The bathroom supplies group behind the Triton and Johnson Tiles brands has agreed to acquire Grant Westfield in a deal which could be worth more than £90m.
Shower and tiles maker Norcros is to buy Granfit Holdings Limited for an enterprise value of £80m with an extra £12m pay-out depended on certain performance criteria.
Grant Westfield is a designer, manufacturer and supplier of waterproof bathroom wall panels in the UK.
READ MORE: Triton and Johnson Tiles owner's interim revenue tops £200m as profits surge
The company was founded in 1881 and is headquartered in Edinburgh. Norcros is headquartered in Wilmslow, Cheshire, and employs around 2,200 people.
In a statement issued to the London Stock Exchange, Norcros said the acquisition is expected to be "double digit earnings enhancing" in the first full financial year post completion.
The deal will be funded by its debt facilities and the proceeds of a proposed placing of new ordinary shares in the company, to raise approximately £18m.
For 2021, Grant Westfield reported a revenue of £42.2m, up from £32.3m in 2020, and an adjusted EBITDA of £10.1m, a rise from £6.5m.
Norcros chief executive Nick Kelsall said: "The acquisition of Grant Westfield with its premium Multipanel brand and market leading position is a strategically compelling addition to the group, broadening our bathroom product offer.
"Grant Westfield's focus on design, new product development and its standard of customer service will significantly enhance the group's portfolio.
"I am looking forward to working with the Grant Westfield managing director, Sarah Law, and her team as we work together on the next phase of growth."
Sarah Law, managing director of Grant Westfield, added: "We are excited to be joining the Norcros family.
"There are clear opportunities to grow together and, as a leader in the waterproof panel market, our Multipanel brand will be very much at home with their existing bathroom brands.
"This represents an exciting opportunity to accelerate our successful strategic growth plan in the UK and internationally through new products and market penetration."
