Kitchen supplier Howdens has agreed a \u00a3390m acquisition of the parent company behind Yorkshire-based DIY Kitchens in a deal that will give the group direct access to the UK’s non-trade consumer market for the first time.<\/p>\n
The acquisition of Ultima Furniture Systems, which trades as DIY Kitchens, will see Howdens pay \u00a3292.5m in cash and issue \u00a397.5m of new shares to the seller.<\/p>\n
The enterprise value equates to around 8.5 times DIY Kitchens’ last twelve months EBITDA to March 2026 and is expected to be immediately accretive to revenue, EBIT margins and earnings per share.<\/p>\n
DIY Kitchens has built a strong reputation as one of the UK’s leading online kitchen retailers, selling directly to consumers through a digital platform that allows customers to design, plan and order kitchens themselves. The business generated revenues of \u00a3136m and EBIT of \u00a337m in 2025, delivering an EBIT margin of 27%.<\/p>\n
The company has achieved annual revenue growth of more than 17% over the past five years and owns freehold property assets valued at approximately \u00a355m.<\/p>\n
Howdens said the acquisition would complement rather than compete with its core trade-only model, with DIY Kitchens continuing to operate independently following completion.<\/p>\n
Andrew Livingston, chief executive of Howdens, said: “The acquisition of DIY Kitchens, which will be operated on a standalone basis, adds a complementary, very profitable business to the Group, providing access to non-trade end customers through its direct online channel with self-service planning, design and ordering tools.<\/p>\n
“DIY Kitchens shares many of the characteristics that underpin Howdens’ success including well-invested manufacturing, strong vertical integration, scalable capabilities and a deep, well-embedded entrepreneurial culture.”<\/p>\n
The deal brings together two vertically integrated manufacturers with differing routes to market. While Howdens’ network of 893 depots serves trade professionals through an in-stock model backed by design support and credit facilities, DIY Kitchens focuses on consumers seeking a more self-managed purchasing process.<\/p>\n
Howdens said DIY Kitchens’ online proposition is supported by two destination showrooms, with a third currently under construction in Scotland.<\/p>\n
The group believes the transaction will expand its addressable market while preserving the distinct strengths of both businesses. It also expects to identify operational efficiencies over time, particularly in sourcing, raw materials procurement and manufacturing equipment.<\/p>\n
The cash element of the acquisition will be funded through existing cash resources and a new \u00a3240m bank facility. Despite the purchase, Howdens said it expects to retain a robust balance sheet and remain in a net cash position after completion.<\/p>\n
The company also confirmed there will be no change to its capital allocation strategy, dividend policy or previously announced \u00a3100m share buyback programme for 2026.<\/p>\n
Completion of the transaction remains subject to customary regulatory approvals.<\/p>\n
Howdens said trading in the year to date remains in line with expectations ahead of its half-year results on 23 July.<\/p>\n","protected":false},"excerpt":{"rendered":"
Acquisition will see Howdens pay \u00a3292.5m in cash and issue \u00a397.5m of new shares<\/p>\n","protected":false},"author":271992,"featured_media":2067116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57362,53262,2,7,120781],"coauthors":[137100],"class_list":["post-2155231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-acquisitions","category-business-news","category-deals","category-manufacturing","category-markets","tag-top-story","tag-yorkshire"],"yoast_head":"\n