Advent International Funds Buyout and European Expansion of Danish Furniture Retailer

Furniture World Magazine

Advent International, the global private equity firm, announced that it has acquired ILVA, Denmark’s second largest furniture retailer, and plans to expand the business into other European countries. Founded by the Linde family in 1974, ILVA has built a strong brand in its home market. It offers a wide range of products, combining top-quality manufacturing with the best of international design. ILVA operates in the under-served middle market of furniture retail, positioned between Roche-Bobois and Ligne Rosset on one end and IKEA and MFI on the other. The company’s stores are architect-designed, with a focus on stylish presentation and space. By providing home delivery and customizing 10 percent of its orders, ILVA also maintains high levels of customer service. The company currently operates three stores in Denmark, totaling more than 85,000 square feet of retail space, and plans to launch in Sweden next year before opening in the UK. “ILVA’s concept and products will reinvigorate furniture buying for millions of people, providing the best of Scandinavian design and quality at affordable prices,” said Martin Toogood, Executive Chairman who will spearhead the planned expansion. “I am delighted to be leading the company in its expansion beyond its home market. We are already looking for sites in Sweden and the UK.” Mr. Toogood is the former CEO of B&Q and Habitat, Non-Executive Director of Heals, and Retail Director of Woolworths and British Home Stores. Jorgen Linde, currently President, will retire from the company and his son, Jesper Linde, will continue as CEO, Scandinavia. In addition to Mr. Toogood, Advent International has appointed Derek Maynard, former Executive Director of British Home Stores and a property consultant with extensive retail experience, as Development Director. Commenting on the investment, Advent International Director Fred Wakeman said: “ILVA is well positioned to build a major pan-European business: its broad product range is easily adaptable to preferences in local markets, it has attractive and flexible store formats, easily edited and adaptable catalogues, a supplier base that can support expansion and delivery to several countries, and effective IT systems. We are delighted to support Martin Toogood, Derek Maynard and Jesper Linde in taking ILVA to its next stage of development.” The European furniture retail sector totaled some €78 billion (over $86 billion) in 2001. Growth expected to continue at 4 percent per year, driven by a continuing increase in single-person households, the growing frequency of customer relocation, and the trend to entertaining and being entertained in the home. The industry is fragmented in most European markets, with chain stores increasingly taking market share from smaller independent retailers, presenting further expansion opportunities for ILVA once it is established in Sweden and the UK. Advent International is a leading private equity investor in the retail sector, having backed more than 20 retail companies in the US, Europe, Latin America and Asia Pacific. These include Kirkland’s, the US specialty retailer of decorative home accessories and gifts whose aggressive five year pan-US expansion plan Advent funded prior to IPO on NASDAQ last year; Tweeter Home Entertainment, the premier consumer electronics retailer, floated on Nasdaq in July 1998; Dollar Express, formerly the nation’s third-largest single-price retailer, acquired by Dollar Tree Stores (Nasdaq: DLTR) for $375 million; HMV Group, the world’s most successful retailer of music, books and videos in which Advent invested jointly with EMI, supporting domestic consolidation and international expansion before the company floated on the London Exchange in 2002; and Poundland, the UK’s No. 1 single-price discount chain, in the process of doubling the number of its stores in the UK. Debt for the deal is being provided by Bank of Scotland Corporate Banking. Advisers to Advent were Ernst & Young (financial and corporate finance); Lovells and Osborne Clarke (legal); advisers to the vendors were Lehman Bros. (corporate finance) and Lind & Cadovius (legal). About Advent International: Advent International is one of the world’s largest private equity firms, with $6 billion in cumulative capital raised and offices in 13 countries. The firm has over 90 investment professionals operating in North America, Europe, Latin America and Asia. Since its founding in 1984, Advent has financed over 500 companies and has helped businesses raise $10 billion through public equity and debt offerings. These include 128 IPOs on 20 stock exchanges worldwide. Advent is committed to helping management teams build successful businesses by applying its industry expertise, international resources and local market knowledge. For more information, visit www.adventinternational.com.