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Advent divests stake in DFS for £58.5m

RBR Staff Writer Published 13 February 2017

US-based private equity firm Advent International has divested the remainder of its stake in homewares retailer DFS Furniture for £58.5m.

In this regard, Advent has completed sale of 25,661,359 existing ordinary shares in the UK based furniture retailer to institutional investors with each share priced at £2.28. The share disposal was done through an accelerated bookbuild offering process with Joh. Berenberg, Gossler & Co acting as sole bookrunner and placing agent.

In November 2016, Advent had divested 12.1% stake in the upholstered furniture retailer for £61.7m with each share priced at £2.40.

Six years ago, in 2010, Advent acquired DFS Furniture from a company owned by Lord Kirkham and his family in a deal that was reported by Reuters to be worth £500m. By 2015, the stake came down to 50% as per the publication though Advent continued to be the largest shareholder in the sofa retailer.

After two more cuts, Advent’s stake came down to 12.1% before the latest divestiture which marks its exit in the furniture retailer’s business.

Last week, DFS Furniture released its half year trading update, reporting a growth of 7% in gross sales in H1 2017 which ended on 28 January 2017. The furniture retailer attributed its growth to its Dwell and Sofa Workshop businesses which it acquired in 2013.

Founded in 1969 by Graham Kirkham near Doncaster in the UK with a single store, DFS Furniture has grown to add 110 stores by 2016 across the UK, Ireland and The Netherlands. In 2015, the furniture retailer was listed on the London Stock Exchange.


Image: Advent completed its exit from DFS Furniture. Photo: courtesy of DFS.