Capital injection gives world's oldest conservatory firm a place in the sun

THE world's oldest conservatory company is poised for growth after securing a "significant" capital injection from a Yorkshire-based private equity house.

Leeds-based Endless is providing extra working capital for Amdega, which dates from 1874 and supplies conservatories, orangeries, summer houses and gazebos.

Darlington-based Amdega's clients include the luxury hotel and resort operator Four Seasons.

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Amdega, which has an annual turnover of nearly 20m and employs 220 people, also exports to the US and Europe.

Endless, which specialises in acquiring UK-based businesses, worked on the deal alongside HSBC, which has also provided funding.

Aidan Robson, an investment director at Endless, said: "This fresh investment marks a significant point in Amdega's long and illustrious history, and will provide the business with the capital to implement

a series of strategic development and improvement initiatives."

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Steve Sutherland, the chairman of Huddersfield-based building faade contractor, Dortech Architectural Systems, joins Amdega as executive chairman.

Mr Sutherland previously worked with Endless as the former chairman of fitted furniture retailer Neville Johnson, which the firm exited in 2008 in one of its most successful investments.

Endless saved around 150 jobs when it invested in Manchester-based Neville Johnson in 2006.

Warwick Ley, a partner at Endless, added: "While sector conditions are tough, Amdega occupies an enviable brand position in its market.

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"With numerous improvement initiatives to pursue, we are very excited about the long-term prospects for the business.

"The investment is in line with our strategy to back the UK manufacturing industry and, in particular, British heritage brands with strong growth potential."

Between 2009 and 2010, Amdega cut its workforce by around 80 staff in response to the global slump.

During the recession, consumers were less likely to buy "big ticket" items such as conservatories and summer houses.

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Mr Ley said: "The consumer market had taken a downturn. The reduction in headcount was in response to that. I have known the business for four or five years, and it has strong, long term fundamentals. It's a well known brand at the premium end of the market."

The investment – which Mr Ley described as a "typical Endless size deal" – will help to boost Amdega's manufacturing and marketing strategies.

He said Amdega's business model was very similar to Neville Johnson's, which is why Mr Sutherland, who has extensive experience of the building products industry, was chosen as executive chairman.

Mr Sutherland said: "Amdega is a great British brand with a proud, 135-year heritage in the premium timber conservatory market.

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"This investment from Endless will play a key role in allowing the management team and I to build on its longstanding position as a market leader in the industry."

The deal team from Endless was Mr Ley, Mr Robson, Chris Clegg, Lucia Villamor and Ian Plumb.

A team from Addleshaw Goddard advised Endless, while the corporate team at Cobbetts advised Amdega.

Overall, Mr Ley said there were some signs of the private equity market picking up, but there was nothing to suggest it was reaching the scale of 2006 and 2007.

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Endless is responsible for investments with a combined turnover of more

than 1bn.

A FUND OF INVESTMENT

Leeds-based Endless is one of the UK's best-known turnaround investors.

The private equity house, which was founded in 2005, specialises in providing investment to businesses "facing challenges or finding themselves in special situations".

The fund invested more than 110m in 30 transactions over its first four years.

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Endless is investing Fund II, which closed in February 2008 with total commitments of 164m, provided by institutional investors from across the US and Europe.

The New York State Retirement Fund is one of these investors, along with a fund linked to American football legend Joe Montana.

Endless has 16 investment professionals operating nationwide from offices in Leeds, Manchester, Birmingham and London.

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