Darlington firm Amdega secure investment
Aug 19 2010 by Karen McLauchlan, Evening Gazette
THE world’s oldest conservatory company - based in Darlington - has been taken over by a private equity firm.
Amdega, which was established in 1874 and employs 220 at its base in Faverdale, has secured a “significant” capital injection from Leeds-based private equity house, Endless LLP.
A designer and manufacturer of premium timber conservatories, Amdega has a annual turnover of nearly £20m.
The investment from Endless will be used to provide additional working capital for the business and to support the ongoing development of Amdega. Endless worked on the deal alongside HSBC, who has also provided funding.
Endless has backed a number of well-known British brands in the home improvement and building products sector, such as Crown Paints and Neville Johnson.
Aidan Robson, North East-based 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.”
Amdega supplies bespoke conservatories, orangeries, summerhouses, gazebos and pool houses to both the consumer and hotel markets. The business, whose clients include Gleneagles and luxury hotel and resort operator, Four Seasons, also exports to the USA and continental Europe.
Steve Sutherland, chairman of UK building facade contractor, Dortech Architectural Systems, joins Amdega as executive chairman.
He said: “Amdega is a great British brand with a proud, 135-year heritage in the premium timber conservatory market.
“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.”
Warwick Ley, partner at Endless, added: “Whilst sector conditions are tough, Amdega occupies an enviable brand position in its market. 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.”
