Niko Distribution bought by Ultra Finishing
BATHROOM supplier Ultra Finishing has splashed out to buy a Yorkshire-based distribution company.
The acquisition of Niko Distribution, for an undisclosed sum, will boost the Burnley group’s turnover to more than £65m.
According to its latest filed accounts, Halifax-based Niko made a profit of £900,000 on turnover of £15.4m in the year to September 2010.
Ultra Finishing, located at Heasandford Industrial Estate supplies independent retailers and wholesalers with low cost, high quality taps, showers, heated towel rails and bathroom furniture.
The deal will see Niko chief executive Tony Wood join the board at Ultra. The companies will continue to trade independently with all of the 180 collective employees keeping their roles.
Ultra, which had sales of £50.4m in the last financial year, is now moving quickly with plans to expand its Premier brand portfolio to include more Niko products, with a new range available from 1st September.
Managing director Mike Duggleby said: “We have worked with Niko for many years and have enjoyed a successful working relationship with them.
“We will now be able to offer complete bathroom solutions, something the company has been striving towards. The first phase is expanding the product range in our Premier brand, which will be available in September.”
The Haslingden office of North West accountants Cassons advised Ultra on the deal.
Mr Duggleby added: “We were keen to conclude the deal as quickly as possible so it would put the business in a great position for the second half of the financial year. Cassons’ approach enabled us to complete on time.”
Nick Stockton, partner at Cassons, said: “We work closely with Ultra and were involved from the early stages of the deal, including advising on its structuring from both commercial and tax perspectives.
“Ultra set the end of July as the deadline, and we carried out our due diligence and other work to make sure the deadline was achieved.
“Ultra are a dynamic and forward looking company. We’re delighted to have helped them achieve another great milestone which puts them in a very strong position moving forwards.”
Other advisers to the deal included Umberto Vietri of Yorkshire leagl practice AWB Charlesworth, who provided legal support to Ultra.
Ultra Finishing owns the Hudson Reed, Ultra and Premier brands.
