US firm swallows up Orangebox in multi-million deal
AValleys manufacturer of high-quality office furniture has been acquired in a £63m deal – the biggest business deal this year in Wales.
Orangebox has been bought by American firm Steelcase, which is listed on the New York Stock Exchange and generates annual sales of $3.1bn.
With its HQ and main manufacturing base in Nantgarw, Orangebox, which also has offices in London, New York and Dubai, and other manufacturing bases in Huddersfield and Michigan in the US, has a workforce of 450, 350 of whom are employed in Nantgarw.
The deal will allow Steelcase, which has acquired a 100% stake in the business, to accelerate its product development in Europe and around the world. The is aim is to double the size of Orangebox over the next five years. Steelcase funded the acquisition by borrowings under its credit facility.
Cardiff-based Gambit Corporate Finance acted as lead advisor to Orangebox shareholders on initiating, negotiating and structuring the transaction, which involves the acquisition of Orangebox for £60m, less an adjustment for working capital.
There is also an additional £3m payable to one shareholder over three years, based on certain performance obligations being met.
Orangebox was owned by its three founders – Mino Vernaschi, Remo Vernaschi and Peter Hurley – and their families, with a combined 86% stake. The remaining equity was held by executive management.
Orangebox posted revenues of £69m for the year to end of August.
Steelcase vice-president, global marketing, Allan Smith 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 highperformance teamwork. 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.
Orangebox managing director Mr Vernaschi said: “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.”
The Gambit team was led by Geraint Rowe (partner), Simon Marsden (director) and Sam Forman (executive).
Mr Rowe 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... The acquisition by Steelcase will enable it to exploit significantly greater routes to market in the USA, Europe and Asia.”
Mr Marsden added: “The dynamics of the global office furniture market are evolving rapidly. The shift towards agile working and ensuring that environments reflect an organisation’s culture and current-day working practices has resulted in substantial change in customer requirements and design initiatives. Orangebox is a cuttingedge participant in its market.”
Mr Forman said: “The process was extremely efficient, with completion occurring within nine weeks of signing heads of terms. We look forward to the continued evolution of the company within the Steelcase family.”
Clark Holt Solicitors advised Orangebox, its team compriseing Philip Humphreys, Belinda Walters, Karron Whitter and Jonathan Ashbridge.