Management team buys struggling tile business
Norcros, a provider of bathroom and kitchen products, has revealed the sale of its subsidiary, Johnson Tiles UK.
The management team of the Stoke-on-Trent business have paid £1m, with a future payment to Norcros based on performance possible in four years’ time.
Johnson Tiles generates annual sales of £35m and last year made an operating profit of £500,000. However Norcros said the tile manufacturer “has absorbed cash in each of the last three years”. There will also be around £15m in non-cash losses noted separately in the financial reports.
Managing director Stephen Dixon and his team have formed a new company, Johnson Tiles Limited, and the business will stay at its Stoke-on-Trent location, which will be retained by Norcros Group.
Thomas Willcocks, CEO of Norcros plc, said: “In June 2023, we communicated our strategic priorities, namely Portfolio Development, Organic Growth, Operational Excellence and ESG and we will continue to ensure that our capital allocation is aligned accordingly. This sale will allow Norcros to focus on and accelerate the execution of our growth strategy. Johnson Tiles UK has been a long-standing partner of the Group and we thank them for their significant contribution. We wish Stephen and the team every success for the future.”
Based in Wilmslow, Norcros serves markets in the UK, Europe, and South Africa, operating under seven brands: Triton, Merlyn, Multipanel (Grant Westfield), Vado, Croydex, Abode, and Johnson Tiles and has approximately 2,400 employees.
