Norcros plc has announced its acquisition of 100% of the share capital of Abode Home Products Ltd for a total of £4.8 million.
A figure of £3.9 million has been settled in cash and £0.9 million is payable in March 2019. The acquisition includes £0.4 million for net cash balances and normalised working capital adjustments, such that on a debt free, cash free, normalised working capital basis, the complete package is £4.4 million.
Since 2002, when Abode entered the kitchen tap market, it has proved to be an extremely successful, creative and design-led company. The business’s high quality product ranges have diversified and progressed through to nationwide availability of individually styled kitchen taps and mixers, kitchen sinks as well as innovatively designed bathroom taps and showering solutions aimed at consumers aspiring to create their own individual look.
Darren Holliday, managing director of Abode, said: “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.
“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.”
Norcros plc has a growth strategy to increase revenue to £420 million by 2018 and the acquisition follows on from the successful integration of Vado and Croydex which Norcros plc acquired in March 2013 and June 2015 respectively.
Commenting on the acquisition, Norcros plc, group chief executive, Nick Kelsall, said: “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.”