Manufacture of kitchen cookers
May 1989
Jun 1995

Cinven backed an experienced buyin team to acquire Stoves from Yale Valor in 1989. The business designed and manufactured freestanding gas and electric cookers in a market that was in decline. Stoves was underperforming and loss making which enabled the business to be acquired for nil consideration with Cinven providing the necessary working capital to effect a turnaround.

The management team’s first task was to restore Valor, as it was then called, to profitability. Its intention was then to develop a range of more modern, higher margin, British manufactured products to compete with high priced imports. Improvements in manufacturing processes were made and costs were cut. A particular emphasis was placed upon developing a modular design and construction technique.

As a turnaround, this was a relatively high-risk venture. The company performed well, reducing costs and reorganising its production facilities. Cinven’s investors continued to support the business through a substantial round of capital expenditure and an acquisition of a complementary business. In June 1995 Stoves was successfully floated on the London Stock Exchange.

Multiple returned on investment: 5x