Business
Acquisition of Domus Group
Acquisition of Domus Group.
About this update from Headlam Group Plc
[{"type":"text","content":"\n \nRNS Number : 6293Y Headlam Group PLC 07 December 2017 \n\n7 December 2017\nHeadlam Group plc\n('Headlam' or the 'Company')\n \nAcquisition of Domus Group of Companies Limited ('Domus')\n \nHeadlam Group plc (LSE: HEAD), Europe's largest distributor of floorcoverings, is pleased to announce the acquisition of Domus, the UK's leading specification consultant and supplier of hard surfaces for premium construction and refurbishment projects, for a total maximum consideration of £35.4 million (the 'Acquisition').\n \nDomus's core product offering is premium ceramic tiles and engineered flooring, encompassing engineered wood, luxury vinyl tiles ('LVT') and laminate, for application into the residential and commercial project markets. The products are sourced primarily from manufacturers located in Italy, with long-term supply arrangements covering the majority of product lines. Product specifications and orders are achieved by Domus working predominately with architects and interior designers throughout the design phase of a project. Large-scale schemes completed include Battersea Power Station, Wembley Stadium, Terminals 2 and 5 at London Heathrow Airport and the new U.S. Embassy in Nine Elms, South London. In 2016 Domus completed over 3,500 projects for a diverse customer base across commercial office, residential, leisure and retail sectors. For the financial year ended 31 December 2016, Domus reported revenue, EBITDA and profit before tax of £29.6 million, £4.4 million and £2.9 million respectively, with a closing order book of £7.8 million and gross assets of £20.4 million. \n \nDomus will continue to be operated under its existing Domus brand by the incumbent management team as a distinct business unit of the Company. Jon Newey, Domus's Chief Executive, has been with Domus since 2001 having led a management buy-in at that time with other members of the existing senior management team.\n \nThe Acquisition reflects the Company's stated strategy of acquiring businesses that have a strategic benefit, bring further geographic coverage, and increase or expand the Company's market presence into certain product lines and market segments. The Acquisition is complementary to the Company's market-leading core business which supplies a high volume of small orders into both th...