Edinburgh bathroom business bought by English rival for up to £92m
The bathroom supplies group behind the Triton and Johnson Tiles brands has agreed to acquire Edinburgh-based rival Grant Westfield, in a deal which could be worth up to £92m.
Shower and tiles maker Norcros is set to buy Granfit Holdings for an enterprise value of £80m, with an extra £12m pay-out dependent on certain performance criteria.
Grant Westfield is a designer, manufacturer and supplier of waterproof bathroom wall panels in the UK, founded in 1881.
Norcros is headquartered in Wilmslow, Cheshire, and employs around 2,200 people. It stated that the acquisition is expected to be "double digit earnings enhancing" in the first full financial year post completion.
The deal will be funded by its debt facilities and the proceeds of a proposed placing of new ordinary shares in the company, aimed at raising approximately £18m.
For 2021, Grant Westfield reported a revenue of £42.2m, up from £32.3m in 2020, and an adjusted earnings of £10.1m - up from £6.5m.
Norcros chief executive Nick Kelsall said: "The acquisition of Grant Westfield, with its premium Multipanel brand and market leading position, is a strategically compelling addition to the group, broadening our bathroom product offer.
"Grant Westfield's focus on design, new product development and its standard of customer service will significantly enhance the group's portfolio.
"I am looking forward to working with the Grant Westfield managing director, Sarah Law, and her team as we work together on the next phase of growth."
Law added: "There are clear opportunities to grow together and, as a leader in the waterproof panel market, our Multipanel brand will be very much at home with their existing bathroom brands.
"This represents an exciting opportunity to accelerate our successful strategic growth plan in the UK and internationally through new products and market penetration."
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.