Ambitious Business Set For International Expansion

Law firm Irwin Mitchell has advised Chesney's, a designer, manufacturer and retailer of luxury fireplaces and wood burning stoves, on growth capital investment from BGF (Business Growth Fund).

The investment will be used to roll-out additional retail showrooms, and to fund further expansion in international markets such as the US and China. A new BBQ and outdoor heating range will launch later this year. 

London-based Chesney’s, which has showrooms, warehouses and manufacturing facilities in London, New York, Portugal and China, is internationally recognised as the leading luxury brand in its sector.

Founded in 1985 by CEO Paul Chesney, the business originally operated as an antique fireplace dealership before going on to create and manufacture its own contemporary designs and reproductions of period fireplaces made from stone, marble or iron. An extensive range of wood burning stoves and gas fired products followed.

The company sells products direct to retail customers through its own showrooms and via 200 independent retailers across Europe, the Middle and Far East and America. Chesney’s also operates a new build and architectural services division where it has diversified into architectural stonework. Orders have been secured for specialist items such as cantilevered staircases, classical stone facades and a wide variety of architectural features for projects including Dorchester Hotel, Chiltern Firehouse and Corinthia Hotel Apartments.

Recent growth has come, in particular, from the US through its new Manhattan showrooms and Chesney’s architectural services division. Over the past 30 years, Chesney’s has continued to innovate and introduce new products, most recently adding a bioethanol heating range – which provide living flames without the need for a chimney – to its portfolio.

With the BGF investment behind it, the business is forecast to increase sales to £30 million over the next three years. It currently employs 150 people in its various locations in the UK, USA and China.

Alongside the investment from BGF, Paul Chesney has appointed Richard Reynolds as Chairman of the board and he has invested alongside BGF. Among other roles, Richard is Chairman and co-owner of the luxury bathroom retailer CP Hart, has had significant experience in the luxury home improvement sector, as well as private equity experience in earlier ventures.

Paul Chesney, CEO of Chesney’s said: “The business is in a strong position and there are clear opportunities for growth. BGF’s cash injection will allow us to pursue those opportunities at a faster pace than we would otherwise have been able to. Moreover, we now have a non-controlling but long-term funding partner and feel very positive about the role our non-executive directors will play.”

Alistair Brew an investor at BGF who joins the board of Chesney’s said: “Chesney’s focus on heritage, craftsmanship, design and engineering has created an impressive product portfolio that has underpinned strong growth to date. There is now very significant potential to scale up, and we are delighted to be supporting Paul and his team as they embark on the next phase of growth. The funding raised from BGF will enable Chesney’s to roll out its showrooms and pursue further growth overseas.”

Dan Bastide, Corporate partner at Irwin Mitchell, led the team which advised Chesney's.