Business
Acquisition of Abode Home Products Ltd
Acquisition of Abode Home Products Ltd.
About this update from Norcros Plc
[{"type":"text","content":"\n \nRNS Number : 7959T Norcros PLC 01 April 2016 \n\n \n \n1 April 2016\n \n \n(\"Norcros\", the \"Group\" or the \"Company\")\n \nAcquisition of Abode Home Products Ltd\n \nNorcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives, is pleased to announce that it has completed the acquisition of 100% of the share capital of Abode Home Products Ltd (\"Abode\"), a privately-owned business held by Croneta S.A., a company incorporated in Switzerland, and Managing Director Darren Holliday, for a total consideration of £4.8m, of which £3.9m has been settled in cash and £0.9m is payable in the year to 31 March 2019. The acquisition has been funded entirely by debt through existing facilities. The Board expects the transaction to be earnings enhancing immediately.\n \nAbode - business\n \nAbode is a leading niche designer and distributor of high quality kitchen taps, bathroom taps, and kitchen sinks. The business has strong customer relationships and market positions in both the UK branded and own-label segments. Abode's leading edge product design, quality, technical innovation and service are the key drivers of Abode's success to date. \n \nAbode is based in Barnsley, South Yorkshire, employs 21 people, and has an experienced management team led by Managing Director Darren Holliday, all of whom will be staying with the business.\n \nFurther information on Abode can be found at http://www.abodedesigns.co.uk\n \nAbode - financial information\n \nFor the year ended 30 June 2015, Abode's audited financial statements showed revenue of £9.9m, profit before tax of £0.7m, and adjusted EBITDA of £0.6m. As at 30 June 2015 Abode had gross assets of £5.3m. For the 12 months to 29 February 2016, the unaudited adjusted EBITDA was £0.8m.\n \nAcquisition details\n \nNorcros has acquired 100% of the share capital of Abode for an initial cash consideration of £3.9m plus deferred consideration of £0.9m payable in the year to 31 March 2019, these figures being subject to finalisation of completion accounts. The consideration includes a payment of £0.4m for net cash balances and normalised working capital adjustments, such that on a debt free, cash free, normalised working capital basis, the consideration is £4...