VEKA swoops on Midlands rival
PVC windows manufacturer VEKA has snapped up its larger rival Bowater Building Products.
The deal, for an undisclosed sum, will more than double the Burnley company’s turnover, which last year was £28m.
Based in Sutton Coldfield and with a site in Coventry, Bowater Building Products had sales of more than £50m last year. It is well known in the market place known for its WHS Halo brand. The combined group will have more than 400 employees.
Dave Jones, managing director of VEKA, which is part of German company Laumann Industrie, said: “Since we established our UK manufacturing facility in Burnley 25 years ago, VEKA has continued to invest in its systems, people and plant and is now in the position to demonstrate further commitment to the local and UK market with this acquisition.
“As many of us in the industry are aware, the current market is extremely difficult, yet VEKA has continued to invest in its systems, people and plant and is now in the position to demonstrate further commitment to the UK market with this acquisition.”
Mr Jones said BBP had been selected after a thorough review of potential targets due to its “obvious synergies” in terms of product quality and positioning.
A comprehensive strategic review will now take place into the facilities at the VEKA and Bowater Building Products sites.
In a statement VEKA said: “The acquisition of Bowater Building Products is the result of a thorough market review by VEKA and is a long term investment for the company – as such, any decisions taken will be carefully considered to ensure they are the best option for the long term future of the VEKA and WHS Halo brands.
“For both VEKA and WHS Halo it will be ‘business as usual’ during the review process.”
Law firm Brabners Chaffe Street advised VEKA on the deal. Led by corporate partner Caroline Litchfield the team included Tom Burton, Ruth Hargreaves, William Ngan, Colin Bell, Leo Carroll and Paul Nicholls. Wragge & Co acted for the seller.
