DFS furniture founder Lord Kirkham is '£300m richer' after sale to equity firm

Lord Kirkham will step down as executive chairman of DFS, 40 years after he set up the firm in a former billiard hall in Doncaster. Today DFS has 74 stores and more than 2,600 staff.

The value of the deal was not disclosed, but the Yorkshire Post understands the price was around 500m.

As a result, it is understood the life peer, the adopted son of a miner, will have earned around 300m.

Lord Kirkham floated the business in 1993 before taking it private again in 2004 for 507m. He will be succeeded as chairman by former Alliance Boots chief executive and Advent partner Richard Baker.

The sale has come as the 65-year-old founder approaches retirement with no family successor in line.

He said he has "lots of interests and commitments" outside of DFS, including charity work and building up his art collection.

Although Lord Kirkham has given up his equity stake in DFS, he retains a financial interest in the firm.

He told the Yorkshire Post: "Richard (Baker) will want me to be involved as long as he thinks he needs to be helped. I will keep in touch with them regularly and be on the end of the phone."

He said he had been impressed by Advent's management, who "seemed to be thoughtful and don't rush into things" and added: "The plans to expand DFS will continue to offer great career opportunities."

The private equity firm adds the sofa chain to its retail portfolio, which includes discount chain Poundland.

DFS has weathered the recession while rivals such as SCS Upholstery and Land of Leather have fallen by the wayside.

Advent director Andy Dawson said: "The company's relative size and reputation as market leader has allowed it to perform well during the downturn," .

As well as its stores, the group has three manufacturing centres for sofas at Carcroft in Yorkshire, Long Eaton in Nottinghamshire and Alfreton in Derbyshire.