Member Article

Eurobaths International acquired by Wilmslow bathroom business

Wilmslow-headquartered shower and tiling business Norcros has acquired Eurobath International for a total sum of £16m.

Norcros supplies tiles, showers and adhesives to consumers and businesses, and owns companies in South Africa and Australia.

Eurobath International, which trades as Vado, has been acquired in its entirety for a cash consideration of £11m plus debt and debt-like items, which will be assumed as part of the deal for around £0.9m.

A further £4.1m will be paid depending on the future financial performance of the bought company, while Norcros’ board said it expects the acquisition to bring in earnings with immediate effect.

Vado’s 144 employees in Cheddar, Somerset, will be kept on along with the business’ management team, headed up by managing director Jim Williams.

Mr Williams said: “The Vado team is looking forward to working with Norcros to develop further business opportunities and to grow as part of a larger organisation.”

The bought company has a strong export base with approximately 60 countries on its books, while it brought in revenues of £25.6m for the year ending December 2012.

Norcros funded the entire deal using existing cash resources and a £19m increase to its banking facility, which took the Group’s total committed credit facilities from £51m to £70m.

Nick Kelsall, chief executive of the group, said: “The acquisition of Vado and its premium brands and excellent product offering is an exciting addition to the Group’s portfolio.

“I have been impressed with the commitment and passion of Vado’s management and employees and am confident that they and the business will continue to thrive under Norcros ownership.

“This transaction represents the first step in our enhanced growth strategy of making selective and complementary acquisitions which have the capability of improving profitability as well as broadening our brand portfolio, product offering and distribution channels.”

This was posted in Bdaily's Members' News section by Miranda Dobson .