Norcros mixes it up with Vado deal
SHOWERS and tiles supplier Norcros is widening its products range with the acquisition of Vado, a bathroom tap and mixer shower specialist, for up to £16m.
Norcros, which owns Nuneaton-based Triton and Stoke’s Johnson Tiles, is paying an initial £11m in cash and assuming debt of £900,000 for West Country-based Eurobath International, which trades as Vado.
Vado, which was previously owned by two families, the Walkers and Williams, is a manufacturer and global distributor of bathroom controls including taps, mixer showers, bathroom accessories and valves, with strong brands and a product offering positioned at the mid to high end segment of its target markets.
The firm is headquartered in Cheddar, Somerset, and has 144 employees and has more than 1,000 customers, ranging from residential and commercial developers to high end boutique retailers and merchants.
The deal is expected to be earnings enhancing immediately. For the year ended December 31 Vado reported ebitda of £2.5m and profits of £2.1m om revenues of £25.6m.
UK revenue represents 55% of total revenue, the remainder comes from its global distribution network with sales to over 60 countries, most notably in the Middle East and Africa.
Its management team, led by MD Jim Williams, will be remaining with Norcros.
Norcros has funded the deal from existing cash resources and a £19m increase to its existing banking facility to £70m on existing terms.
It said the Vado deal is “an important step in supporting and accelerating” its growth strategy by expanding its product reach, brand portfolio and giving it srong positions in complementary market segments.
In addition Norcros said it intends to leverage the combined platform of Vado and its Triton shower business to drive increased demand for its products utilising the enlarged customer base, broader product offering, dual branding, and extended geographical scope.
Chief executive Nick Kelsall said “The acquisition of Vado and its premium brands and excellent product offering is an exciting addition to the group’s portfolio.
“I have been impressed with the commitment and passion of Vado’s management and employees and am confident that they and the business will continue to thrive under Norcros ownership.
“This transaction represents the first step in our enhanced growth strategy of making selective and complementary acquisitions which have the capability of improving profitability as well as broadening our brand portfolio, product offering and distribution channels.”
