Wallcoverings business eyes growth after MBO
A Lancashire wallcoverings business has been acquired by its management team in a move that will secure new investment and create significant growth.
The consumer wallcoverings division of CWV Ltd has been acquired by commercial director Steve Mulheron for an undisclosed sum. A new company, CWV Wallcoverings Ltd, was formed to purchase the trade and assets of the business with all employees moving across to the new company.
CWV wallcoverings designs and supplies wallcoverings under the Vymura, Coloroll and Crown brands to major DIY retailers in the UK, as well as independent and online retailers.
The deal was funded by GE Capital Bank together with Duchy Active Equity – a Harrogate-based private equity fund. Ken Partington, a partner in Duchy Active Equity, will join the board as chairman.
Steve Mulheron, managing director and majority shareholder in CWV Wallcoverings Ltd, said: “We’re in a fashion industry where quality and innovation in design are critical to success. We know there’s a real opportunity to add value for customers and employees, by growing our product ranges and moving into new sectors.
“We intend to invest significantly and will use our rich design heritage to attract new customers, both in the UK and abroad.”
The corporate finance team at Moore and Smalley advised Steve Mulheron on fundraising, financial modelling and deal strategy. The firm also provided tax advice to the new company.
Paul Bennett, corporate finance manager at Moore and Smalley, said: “Steve’s track record in the industry, and that of his new business partners, speaks for itself. This deal places the business on a firm footing for the future. It’s an exciting time for CWV’s many prestigious customers who will benefit from investment in new products.”
CWV Wallcoverings is based on Lions Drive, Shadsworth Business Park. Steve has been part of its management team since the business was formed in 2004.