Kitchen manufacturer snapped up by European giant
YORKSHIRE kitchen manufacturer Rixonway Kitchens has been bought in a deal that could rise to £34m.
The Dewsbury-based business, which supplies kitchens primarily to UK
construction companies active in social housing, has been snapped up by Swedish listed business Nobia, which claims to be the leading kitchen company in Europe, and develops, manufactures and sells kitchens through some 20 strong brands such as Magnet and Hygena.
Rixonway Kitchens was founded in 1978 and has net sales of approximately
£40m. It employs around 480 people and is headed up by CEO Paul Rose who has been with the business since 1992.
Nobia has agreed with August Equity and the management of Rixonway Kitchens, regarding the acquisition of 100% of the shares of Rollfold Holdings – the parent company of Rixonway Kitchens.
The purchase price consists of an up-front consideration of £31m
on a cash and debt free basis, which could rise to £34m based on business performance. The key management will remain in operation until at least March 2016.
Morten Falkenberg, president and CEO of Nobia said: “The acquisition of Rixonway Kitchens is part of our growth strategy to expand to markets and segments that complement Nobia’s existing businesses. We double our market share in the UK project market, which provides new opportunities for value creation for Nobia’s shareholders.”
Giles Taylor and Chris Stott from KPMG advised Nobia on the acquisition.
The transaction has been completed and is not subject to any conditions.
