Saturday 17th October 2015

Total Capital Partners sells its stake in Arthouse to NorthEdge Capital in a secondary buyout

Total Capital Partners sells its stake in Arthouse to NorthEdge Capital in a secondary buyout
NorthEdge Capital, the private equity firm focused on investing in businesses in the North of England, has completed the secondary management buyout of home decoration supplier Arthouse.

The deal sees NorthEdge take a majority stake in the business, as well as an exit for Total Capital Partners, an independent firm that specialises in providing combined equity and debt funding for small and medium-sized businesses in the UK. Total Capital backed Arthouse in 2007.

Rossendale-based Arthouse is one of the largest providers of wall coverings and home decoration products in the UK, supplying to major retailers including B&Q, B&M, Wilko and Homebase.

Since Anita Kenyon led the MBO of Arthouse in 2007, the business has delivered impressive growth, increasing its annual turnover from £17 million to £25 million and its employee base from 37 to 65. The management team has worked with Total Capital to diversify its product lines, sales channels, supplier base and to expand internationally.

With the support of NorthEdge, Arthouse is now looking to further strengthen its presence in the UK, and expand into overseas markets, in particular the US and Middle East. It is also aiming to enhance its digital offering, and make further bolt-on acquisitions, with focus on other companies in the UK targeting overseas markets.

Anita Kenyon, Managing Director at Arthouse, commented:

“We have worked closely with the team at Total Capital for eight years since taking the business independent. Their innovative investment structure was ideally suited to support our growth plans, with the result that we have diversified to become one of the country’s leading suppliers of interior decor solutions.

Natalie Eastham, founding partner of Total Capital and former non-executive director of Arthouse, commented:

“Anita and the team at Arthouse have done a fantastic job since the initial MBO. They have laid strong foundations for future growth and we wish the company well as it embarks on the next stage of its development with new partners. “