Norcros plc, has acquired 100% of the share capital of Abode Home Products Ltd for a total of £4.8m.
£3.9m has been settled in cash and £0.9m is payable in March 2019. The acquisition includes £0.4m for net cash balances and normalised working capital adjustments, such that on a debt free, cash free, normalised working capital basis, the complete package is £4.4m.
Darren Holliday, founder and managing director of Abode, said: “This transaction marks a new and exciting chapter for the Abode business and I am confident that being part of Norcros will enable us to accelerate the strong progress we have made over the last few years.
“We will continue to operate autonomously under the Abode banner and work with our existing customer base. Our business has strong customer relationships and a market position in both the UK branded and own label segments and our leading edge product design, quality, technical innovation and service have been some of the key drivers of our success to date and will take us forward with Norcros to widen our horizons, which is an exciting prospect.”
Commenting on the acquisition, Group chief executive Nick Kelsall said: “The Abode business is an excellent strategic fit with our current portfolio, broadening the Group’s product offer, as well as providing a number of opportunities to drive revenue and procurement synergies. I look forward to working with Darren and the team to further grow and develop the business”.
Norcros plc has a growth strategy to increase revenue to £420m by 2018 and today’s acquisition follows on from the successful integration of Vado and Croydex which Norcros plc acquired in March 2013 and June 2015 respectively.
Picture shows: Norcros Group’s CEO Nick Kelsall (Left) with Darren Holliday, md of Abode.