Magnet and Poggenpohl owner strengthens presence in developer market
Kitchen furniture giant Nobia has acquired privately-owned Commodore and CIE, two companies focused on the private developer market, for £28million.
Founder and CEO of Commodore is John White who is also the major shareholder in CIE, with the combined group employing around 130 people.
Based in Grays, Essex, Commodore manufactures designs and installs mid-range kitchen for property developers and house builders. It represents around 95% of the revenue of the combined group of around £40million and an EBIT margin of 10%.
CIE is a kitchen reseller that designs and installs high-end kitchens to London developments and has offices in Kent and London.
The transaction also includes a variable cash consideration of a maximum of £4million, conditional upon business performance and that key management stay with the operation for at least two years.
It strengthens Nobia’s position in the UK, which sees both furniture companies add to its existing portfolio, including Magnet and Poggenpohl.
Nobia expects the acquisition to immediately have a positive effect on its earning per share and to generate an operating margin close to the company’s overall target of 10%.
President and CEO of Nobia Morten Falkenberg commented: “By the acquisition of Commodore and CIE we enter the attractive private developer segment and strengthen our presence in the UK project market. The acquisition is fully in line with our growth strategy to expand to markets and segments that complement our existing business and to achieve synergies.”