Customer buys door maker in £7m deal
A WIRRAL manufacturer of composiute and PVC-U doors has been snapped-up by one of its major customers for £7.1m.
Vista Panels, which is based at a 50,000 sq ft site in Prenton, was previously owned by South Manchester investment company CorpAcq and has now been acquired by listed company Eurocell.
Based in Derbyshire Eurocell floated on the main market in February 2015 and is a sustainable B2B supplier of PVC building products with its own distribution network. The deal is being funded from Eurocell’s existing bank facilities and is expected to be earnings enhancing in the first full year of ownership.
Vista is a leading manufacturer of composite and PVC-U entrance doors and has been a leader in the growth of the composite doors market in the UK, with a strong presence in the social housing sector.
It is currently the sole supplier of entrance doors to Eurocell and a significant consumer of Eurocell’s profile products. It currently employs more than 100 people nationwide. In the year ended 31 December 2015, Vista generated revenue of £13.7m. The earnings before interest and tax were £1.4m and gross assets were £3.9m.
Eurocell said it is expected that Vista will continue to operate as a standalone business in the Wirral under the Vista brand. The current management team will remain in place.
Patrick Bateman, chief executive of Eurocell said: “The acquisition will broaden the routes to market for Vista in particular to the new build sector, and provide opportunity for cross selling into the respective customer bases.
“We know the business well, having worked with them both as a customer and a supplier. It’s logical, therefore, that we wanted them to join forces with us. Together we have a stronger proposition in markets strategically important to both businesses.”
