Business
Acquisition of Davidson Holdings
Genuit Group PLC has acquired Davidson Holdings Limited for a total consideration of £49.0 million on a debt-free and cash-free basis. Davidson, comprising brands like Salamander Pumps and Cistermiser, is expected to deliver full year 2025 revenue of £32.8 million. The acquisition, funded from Genuit's existing debt facilities, is expected to be EPS accretive during the first full year of ownership with an adjusted operating margin above 20%. Post acquisition, the Return on Invested Capital is expected to exceed Weighted Average Cost of Capital during the second full year of ownership, excluding future synergies, and 2025 year end leverage is expected to be circa 1.6x on a pro forma basis. The total consideration represents 8.5x Davidson's EBITDA based on year ending April 2025. Disclaimer*
About this update from Genuit Group Plc
[{"type":"text","content":"\n\nGenuit Group Plc\nAcquisition of Davidson Holdings Limited\n \nStrengthening Portfolio in Sustainable Building Solutions\n \nGenuit Group plc ('Genuit' or the 'Group'), the UK's largest provider of sustainable water, climate and ventilation solutions for the built environment, today announces that it has acquired Davidson Holdings Limited ('Davidson', or the 'Business') for a total consideration of £49.0 million on a debt-free and cash-free basis (the 'Acquisition').\n \nThe Business comprises leading brands in the plumbing and heating sectors including Salamander Pumps, Cistermiser, Talon and Keraflo. These brands have strong market positions, primarily in the UK Repair, Maintenance and Improvement sectors of the residential and commercial segments, and benefit from sustainability-led growth drivers. The Business is expected to deliver full year 2025 revenue of £32.8 million.\n \nThe consideration has been fully funded from Genuit's existing debt facilities. The Business will form part of the Group's Sustainable Building Solutions ('SBS') Business Unit.\n \nAcquisition Highlights\n \n· Increases the breadth of Genuit's portfolio sold through the merchant channel to plumbing and heating engineers and commercial contractors. Growth synergies are anticipated from leveraging Genuit's broad routes to market and demand creation and specification selling model.\n· Deploying the Genuit Business System ('GBS') and utilising Genuit's purchasing scale are expected to unlock productivity and cost synergies from 2026 onwards.\n· Davidson's portfolio includes products and solutions to reduce water usage, consistent with Genuit's Sustainable Solutions for Growth strategy. Water conservation to address scarcity of supply is expected to be an increasing focus for developers, Local Authorities and water utility companies because of climate change. \n \nFinancial Highlights\n \n· Total consideration of £49.0 million on a debt-free and cash-free basis1, equivalent to 8.5x EBITDA2, based on year ending April 2025\n· Expected to be EPS accretive during the first full year of ownership with an adjusted operating margin above 20%, in line with Genuit's medium term target\n· ...