Norcros announces Scottish acquisition in deal worth up to £92m

Wilmslow-based bathroom and kitchen supplies group, Norcros, says it has agreed to buy Scottish bathroom wall panels maker Granfit Holdings, in a deal worth up to £92m.

The purchase price is £80m, with a potential earnout of up to £12m.

Norcros says it accelerates its strategy to expand its bathroom product offer and the deal is expected to be double digit earnings enhancing in the first full financial year, post completion.

The acquisition will be funded from the company’s debt facilities and the proceeds of a placing of new ordinary shares, which raised £18.6m.

Completion of the deal is expected to take place on May 31.

Norcors says the deal represents a rare opportunity to add a growing, market leading, profitable, UK-focused and well positioned business to its existing portfolio.

It says the UK bathroom and shower panel market is a growing segment of the broader UK bathroom wall coverings market, which the board believes represented approximately 30% of the estimated £330m market in 2021.

Edinburgh-based Grant Westfield has a market share of approximately 12% of the UK bathroom wall coverings market and approximately 40% of the UK bathroom shower and panel market.

For 2021, Grant Westfield achieved revenues of £42.2m, and an adjusted EBITDA of £10.1m.

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.”

Sarah Law said: “We are excited to be joining the Norcros family. 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.”