Norcros acquires Croydex for 21.9million GBP

26 Jun, 15

Managing director Nick McGrellis to stay with the company

Owner of Vado, Triton Showers and Johnson Tiles, Norcros has acquired privately-owned bathroom and accessories manufacturer Croydex for £21.9million.

The acquisition of Croydex is to increase Norcos revenue to £420m by 2018 and follows on from the acquisition of Vado.

It will also increase the depth of the Norcros product range, and according to the company will “benefit from the global distribution channels, sourcing skills and strong financial position of the enlarged Group.”

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Andover-based Croydex was owned by the Brown and Marriott-Dodington families and managing director Nick McGrillis, who will stay with the business.

Norcros has paid £20.8million in cash, with £1.1million deferred for three years, funded by debt through existing facilities.

In addition to this, a long-term incentive scheme has been put in place for managing director Nick McGrellis which will pay up to £0.9m dependent on the financial performance of Croydex over the next three years.

Croydex employs 82 people and for the year ended 31 December 2014 had a revenue of £19.9m, EBITDA before shareholder costs of £2.7m and profit before tax and shareholder costs of £2.6m.

As at 31 December 2014 Croydex had gross assets of £13.7m. For the 12 months to 31 March 2015, the unaudited EBITDA before shareholders costs was £3.1m.

Commenting on the acquisition, group chief executive, Nick Kelsall, said “The acquisition of Croydex is a compelling fit with our strategic growth criteria, broadening the Group’s product offer as well as providing a number of opportunities to drive revenue and procurement synergies. I have been impressed by the quality, energy and vision of the management team at Croydex and I look forward to working with them to further develop and grow the Croydex business.”

Nick McGrellis, Managing Director of Croydex stated: “This transaction marks a new chapter in the history of the Croydex business which dates back over 90 years. I am confident that being part of Norcros will enable us to accelerate the strong progress we have made over the last few years.”