Canburg Limited / Business Growth Fund
Cavendish Corporate Finance is delighted to have advised Canburg, owner of two of the world’s most renowned luxury fitted furniture businesses – Smallbone of Devizes and Mark Wilkinson Furniture – on the capital investment of £8 million from Business Growth Fund (BGF), which will take a minority stake in the business.
The transaction builds on Cavendish’s in-depth expertise in the luxury sector, with previous transactions including Smythson, Princess Yachts, Theo Fennell, Liberty, David Morris, Watches of Switzerland and Mappin & Webb.
BGF’s investment will enable Canburg to accelerate its UK and international growth strategy. This will build on the success and vision that has seen its products take centre stage in the world’s most exclusive developments, becoming the choice of A-List celebrities such as Dustin Hoffman, Sir Elton John and Oprah Winfrey.
CEO Leo Caplan established Canburg in 2009 to purchase Smallbone and Mark Wilkinson Furniture. The British entrepreneur committed more than £10 million to the long-established businesses, enabling them to return to profitability. Following a successful restructuring programme, the group made EBITDA £2.1 million from sales of almost £30 million in the 12 months to 30 June, 2013. Profits are expected to have increased to over £3 million EBITDA in the year to June 2014.
Smallbone is the ultimate in bespoke cabinetry, founded on a time-honoured British craft tradition, with a passion for quality and design. Internationally recognised as the leading global luxury kitchen company Mark Wilkinson Furniture has set the style icons for classic and contemporary furniture for over three decades and has brought fitted furniture for the kitchen and rooms throughout the home into the highest echelons of fine luxury living.
The group has multiple routes to market, selling directly to high net worth customers through showrooms, in partnership with in-market dealerships, as well as selling to developers of luxury properties in leading locations such as New York City.
Howard Leigh, Senior Partner at Cavendish Corporate Finance, commented:
“Canburg has great heritage and is an outstanding example of British craftsmanship and expertise. It is a great brand ambassador for UK overseas, with around a third of its sales coming from internationally. We were very happy to play our part in helping the firm secure investment from the British Growth Fund and the specialist expertise of our corporate finance team in the capital raising arena is one of its core strengths.
Leo Caplan, CEO of the Canburg Group, commented:
“This is a really exciting time for Canburg. I first invested in these businesses because of my passion for the luxury furniture they both make. I started considering the strategic options for the group almost a year ago after being approached by prospective buyers, and instructed Cavendish to assess these. I wasn’t looking to sell but started exploring how best to take the business to the next level. The process reminded me why I fell in love with these companies in the first place and the fantastic opportunities that are available. I am confident that, over the next five years, we can grow the business from its current valuation of over £50 million (post investment) to a global luxury group worth in excess of £500 million.”
Paul OIdham, Regional Director at BGF, commented:
“Leo and his management team have successfully capitalised on Smallbone’s and Mark Wilkinsons’ high standards of design and manufacture building an impressive international reputation and broad customer base. They have looked to BGF to put investment behind their ambition to create a truly global business; we share this vision and over the next few years fully expect to see Canburg take a dominant role on the international stage.
“I would also like to thank the team at finnCap Cavendish. They have done a great job in finding us the right buyer and running a smart and efficient process. Their support throughout has been excellent and combined with their commercial approach and sector knowledge, they have made great advisers for us.”
“Joe Stelzer and his team at finnCap Cavendish were the perfect partners as we navigated this exciting next step for the group. The firm’s wealth of expertise in advising entrepreneurial growth businesses, partnered with their quality of service and professionalism was invaluable and helped make this deal function as smoothly as possible.”
“This transaction is huge for our business as we look to continue our growth journey. We’re very excited to have raised enough capital from a leading impact investor to expand our market-leading position and maintain standards of excellence across all our products. We’re hugely grateful to the team at finnCap, who played a fundamental role, in what we hope, will be a very exciting growth story.”
“I would like to thank all of those involved in the process that has concluded with us ultimately choosing Neighborly as our partner going forward, those at finnCap Cavendish and our CFO Mike Bergin, without whom this would have not happened.”
Thank you to the Cavendish team for your unwavering support throughout this process. Finding a strategic overseas partner to allow me to realise my global ambition was my number one aim, and this has been achieved. In the current market the result you have delivered is exceptional.
It was a great pleasure to work with the Cavendish team again having originally worked with them when we sold Naked Wines to Majestic Wine in 2015. John, Rebecca and the team rigorously assessed the market to find the right new owner for a business with dedicated staff and suppliers and the right deal to achieve Naked’s goal of realising capital and simplifying the business.
“Jonathan, thank you to you and your team for your tremendous support and wise counsel during the process. You kept a calm head throughout and successfully charted a course to bring us to this great conclusion. David, the team and I are all delighted with the outcome as we now join forces with Cafento to build the brand to even greater heights. I would highly recommend your services!”
“The team at Cavendish went far beyond what was expected, supporting us through the entire fundraising process. I am certain that the deal with Piper would never have completed in the time frame without their help.”
Jonathan, thank you for all your help, sound advice and hard work over the last year. You very skilfully guided us through a challenging process. As well as a fantastic exit for some very happy shareholders, there is no doubt in my mind that Orlebar Brown has ended up in the right place. Your patience was rewarded!
“Cavendish worked hard and achieved an excellent result for stakeholders. I would certainly recommend their services.”
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