Kitchen chain Magnet sold to private equity firm for £0
Kitchen fixtures retailer Magnet has been sold to a UK-based private equity firm for a peppercorn fee of £0.
Alteri Partners acquired the retailer from Swedish kitchen giant Nobia, which is pulling out of the UK and offloading all of its operations.
Also included in the transaction is Gower, Commodore, and CIE.
Alteri – which also owns Bensons for Beds – has assumed the obligations for Magnet’s store leases, amounting to a liability of approximately just over £60m.
Nobia said the sale is the “next step” in its strategic market focus, blaming UK market conditions following Brexit and the COVID-19 Pandemic for decreased performance.
Kristoffer Ljungfelt, president and CEO of Nobia, said: “We are committed to increasing the focus on our core Nordic markets, centred around the new factory, Nobia Park, Sweden, and our recognised brands with strong market positions and structurally higher margins.
“Therefore, we have decided to divest the UK operations, giving Nobia the best preconditions for strong profitable growth going forward.”
Speaking to investors, Nobia said that it has faced “a series of macroeconomic shocks and unprecedented external events” over the past five years which have affected earnings and cash flow.
Magnet was founded in Yorkshire in 1918. Nobia acquired the retailer in 2001 from Enodis PLC for £134m. At the time, it operated nearly 500 stores as well as premium bathroom retailer CP Hart.
Sophie Rose, CEO of Magnet, said that Alteri’s investment is a “real vote of confidence” in the business.
She added: “As the UK’s number one specialist kitchen provider, we’ve made significant progress across retail, trade and B2B, and it’s fantastic to have a partner who recognises the strength and potential of these.
“From the momentum we’re seeing in our smaller-format showrooms to the exciting partnerships we’re developing, we’ve built a strong platform for growth. With Alteri’s resources and expertise, we can now accelerate that progress and take our three-year plan even further.”
Arnold Vos, investment partner at Alteri Investors, added: “We are very excited to support a specialist kitchen provider with such strong heritage and a clear plan for growth. The business has shown resilience in a challenging market and has built solid foundations for the next phase. Its broad capability across the kitchen sector and ability to deliver at scale stand out. We see meaningful opportunity ahead and look forward to supporting the team as they execute their plans.”