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06/03/2019

MBO transaction gives 100% share ownership of furniture manufacturer

06/03/2019

MBO transaction gives 100% share ownership of furniture manufacturer

Hammonds, the UK’s quality fitted furniture manufacturer and retailer, has received an investment from HSBC UK (HSBC) and Frontier development Capital (FDC) to support a management buyout (MBO).

Founded in 1926 in Hinckley, Leicestershire, Hammonds supplies fitted bedroom, kitchen and home office furniture to both the home improvement and new build markets. With 89 showrooms across the UK, Hammonds manufactures over 250 orders per day from purpose-built facilities in Hinckley and distributes these nationally via 15 regional service centres. The family-run business has 837 members of staff and achieves an annual turnover of over £85m.

 

The MBO brings 100% share ownership to third-generation family members - Richard Hammonds, Group CEO and Mark Hammonds, Group Director.

 

This transaction provides a third generation of family ownership with the ability to protect its well-established Brand, Values and continued opportunities for growth, and has been brought about by the combined effort of Advisors and Funders to create an innovative funding package.

 

Richard Hammonds, Group Managing Director of Hammonds, said: 


“I am personally delighted to have led this MBO process and to have the personal opportunity to build on the long-standing success of this Family-Owned business brand. Introducing over the last two years, a successful succession and management team to provide continuity and extended strength and opportunity for the group to develop new ranges and products in the future”.


Graham Mold, Head of Growth Capital at FDC, said:

 

“Hammonds are a renowned family business, with a longstanding legacy across the UK for quality and craftsmanship. We’re thrilled to be able to support Richard and Mark in funding this MBO, which will see the shareholding consolidated across an experienced and driven management team. It’s been a great achievement to bring this transaction to fruition, through the collaboration of several corporate finance advisors and legal teams working in the Midlands region. FDC are now looking forward to working with Richard, Mark and the team at Hammonds; they are a prime example of the accomplished businesses we can help to support”.


For more information on Growth Capital funding email info@frontierdevelopmentcapital.com or call
0345 319 4528 to speak with an Investment Director.