Catalyst Corporate Finance has advised the shareholders and management on the management buy-out of Buoyant Holdings, trading as Buoyant Upholstery.
Buoyant is the UK’s largest independent furniture manufacturer and its 630 strong workforce manufactures 95% of its product at its base in Nelson, Lancashire. Buoyant’s focus is on upholstered furniture and its customer base includes national, independent and on-line retailers.
Buoyant has shown tremendous growth in recent years with profits doubling since 2010. The business has achieved this through significant investment in production and design capabilities, a focus on customer service and a reduction in manufacturing lead times.
What difference did we make?
Catalyst was appointed by the shareholders, who included the management team, to assess the opportunity to crystallise the shareholder value that had been built over recent years. Following a strategic review which considered the respective benefits of a trade sale and management buy-out, Catalyst recommended a well funded, private equity backed management buy-out, supplemented by new experienced incoming management, would best deliver the shareholder and management objectives.
Catalyst then structured a process, advising both the selling shareholders and the continuing management team which ensured any conflicts of interest were proactively managed, which resulted in a transaction backed by NVM Private Equity with £7m of equity alongside a significant debt package. The investment by NVM will allow Buoyant to continue to be at the forefront of product innovation and increase capacity to fully support its customer’s needs and to grow into new areas such as export markets.