Triton, Vado and Croydex owner buys business for £4.8million
Supplier of showers, taps, bathroom accessories, tiles and adhesives, Norcros has acquired Abode Home Products from Switzerland-based Croneta and managing director Darren Holliday for £4.8million.
The acquisition sees a cash settlement of £3.9million and £0.9million payable in the year to March 31, 2019 and has been funded by debt through existing facilities.
In addition, a long-term incentive scheme has been put in place for MD Darren Holliday, which will pay up to £0.4million dependent on the financial performance of Abode over the next three years.
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Barnsley-based Abode supplies branded and own-brand kitchen taps, bathroom taps and showers, as well as kitchen sinks, employs 21 people, led by Darren Holliday, and all will be staying with the business.
Abode had a revenue of £9.9million, profit before tax of £0.7million and adjusted EBITDA of £0.6million for the year ended June 30, 2015.
The acquisition is part of a bid for the Norcros group to increase its revenue to £420million by 2018.
It will see Abode Home Products join the same group as Vado and Croydex, which Norcros acquired in March 2013 and June 2015, respectively, as well as Triton Showers and Johnson Tiles.
Commenting on the acquisition, chief executive of Norcros Nick Kelsall commented: “The Abode business is an excellent strategic fit with our current portfolio, broadening the Group’s product offer as well as providing a number of opportunities to drive revenue and procurement synergies. I look forward to working with Darren and the team to further develop and grow the business.”
Managing director of Abode, Darren Holliday remarked: “This transaction marks a new and exciting chapter for the Abode business and I am confident that being part of Norcros will enable us to accelerate the strong progress we have made over the last few years.”
He continued: “We will continue to operate autonomously under the Abode banner and work with our existing customer base. Our business has strong customer relationships and a market position in both the UK branded and own label segments and our leading edge product design, quality, technical innovation and service have been some of the key drivers of our success to date and will take us forward with Norcros to widen our horizons, which is an exciting prospect.”