The new private equity owner of a Lancashire furniture maker says the company and its 300 staff are now set for “even greater heights” after its takeover deal.
4D Capital Partners LLP has acquired J&J Ormerod (JJO), the Bacup-based manufacturer of kitchen, bedroom, and bathroom furniture. Meanwhile JJO has secured £10 million in funding from Allica Bank to back its growth ambitions under new ownership.
The company was founded in 1868 and today runs a 1.2m sq ft production site. JJO has been family-owned for much of its history and family member Stephen Greenhalgh, the third generation managing director, will stay on the board as a non-executive director.
4D plans to invest in JJO's manufacturing business and to back the growth of its installation and contracting arm to develop "a full end-to-end service, from production, to delivery and fitting".
Matthew Scoffield and Anthony Robinson will join JJO as executive chairman and chief financial officer respectively and will work closely with the existing Lancashire management team.
4D Capital Partners aims to invest in Ƶ firms with more than £20m in annual revenue “that can achieve significant scale”.
Alex Silk, founder of 4D Capital Partners, said: "We are excited to be investing in JJO PLC and are honoured to become the new owners of this long-established business, renowned for excellence in manufacturing bespoke furniture.
"From the outset, we have been highly impressed by the talent of the team, the scope of the company’s operations and its growth potential. We are confident that, with our support, JJO can achieve even greater heights."
Stephen Greenhalgh said: "JJO has been part of the fabric of Bacup for generations, and we’re incredibly proud of everything the team has built here.
"4D were an obvious choice to be the new custodians of the business, and with the support of Allica Bank it’s given us a real opportunity to grow the business while staying true to our roots. It’s about creating more opportunities, investing in our people, and broadening the services we can offer our valued customer base."
Amy Beasley, regional growth finance lead at Allica Bank, added: "JJO is exactly the kind of business Allica was built to support – established, ambitious and rooted in its local community. We’re proud that our revolving asset-backed facility has been able to back a business with such a strong heritage and an exciting future, and that we are part of positive change that is all about growth and long-term investment."
4D's investment was led by Alex Silk, Dan Newett, Daniel Hannappel and Dominic Wong. 4D Capital Partners was advised by Quantuma (debt), Shoosmiths (legal), K3 (tax) and Ford Campbell Freedman (tax).
JJO management was advised by RSM, while shareholders were advised by DWF (legal) & RSM (sellside). Allica Bank was advised by Victoria Baker at Pinsent Masons, while asset valuations were carried out by SIA Group & Knight Frank.
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