Furniture firm bought for £63m

A VALLEYS firm that makes high quality office furniture has been snapped up in a £63m deal – the biggest business deal in Wales this year.

Nantgarw-based Orangebox has been bought by American firm Steelcase, which is listed on the New York Stock Exchange and generates annual sales of $3.1bn.

The firm – which also has offices in London, New York and Dubai – has a workforce of 450.

The majority – 350 – work at its HQ and main manufacturing base just north of Cardiff.

The deal aims to double the size of Orangebox over the next five years.

Orangebox was owned by its three founders and their families in Mino Vernaschi, Remo Vernaschi and Peter Hurley with a combined 86% stake.

The company posted revenues £69m for the year to end of August, 2018.

Allan Smith, vice president, global marketing at Steelcase, said: “We saw how Orangebox approached the changing landscape at work and their early recognition that more people want alternatives to the traditional desk, and to work in a range of postures

“They understood people’s need for balance between privacy at work, and the shift toward high-performance team work.

“We are really excited about bringing our portfolios together, and we see the opportunity to more than double the size of Orangebox’s business within five years by leveraging Steelcase’s global scale and distribution.”

Orangebox will operate as an independent subsidiary under its own brand and continue to support its existing dealers as well as Steelcase dealers.

Mino Vernaschi, managing director of Orangebox, said: “Our products enable organisations to work in new, more collaborative ways and can help transform both the culture and efficiency of the organisation.

“My dream was for Orangebox to become a worldwide brand, with Steelcase this will now happen. Our cultures are so similar and we’re excited about becoming part of the Steelcase family.”

Geraint Rowe, a partner in Cardiffbased Gambit Corporate Finance, which helped broker the multi-million pound deal for Orangebox, said: “We have worked with Orangebox for some 10 years. It is an excellent business that has been at the forefront of product innovation and design since its inception. “Orangebox is a dominant UK market participant.

“The acquisition by Steelcase will enable it to exploit significantly greater routes to market in the USA, Europe and Asia.”