REG - Eurocell plc - Acquisition of Alunet

EurocellAnnouncement

07/03/2025 07:15

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RNS Number : 8000Z  Eurocell plc  07 March 2025

7 March 2025

EUROCELL PLC

("Eurocell" the "Group" or the "Company")

Acquisition of Alunet

 

Eurocell plc, the market leading, vertically integrated UK manufacturer,
distributor and recycler of innovative PVC window, door and roofline products,
today announces that it has completed the acquisition of Alunet (the
"Acquisition") for consideration of £29 million on a debt / cash free basis,
comprising an initial payment of £22 million and deferred consideration of
approximately £7 million payable in four annual instalments beginning in
2026. In addition, there is the potential for performance related payments of
up to £6m over the same period.

 

Strategic Rationale and Background to Alunet

The Acquisition advances Eurocell's strategy, significantly strengthening the
Group's position in residential aluminium systems and composite doors, and
adds garage doors to our product portfolio.

 

Alunet includes a stable of innovative fast growing home improvement brands
and comprises four businesses, as follows:

 

 Alunet Systems       An innovative aluminium systems house focused on the residential sector, with
                      a full range of window and door solutions, including bi-fold and sliding patio
                      doors, sold under the Aluna brand
 Comp Door            A fast-growing manufacturer of premium solid core timber doors
 JDUK                 A supplier of sectional aluminium garage doors and components
 UK Doors (Midlands)  A manufacturer of aluminium roller shutter garage doors

 

For the year ended 31 December 2024, Alunet delivered unaudited revenue of
£43 million and EBITDA of £4.5 million (on a pre-IFRS 16 basis).

 

Alunet's retained team, led by Chief Executive Steve Hudson, will strengthen
the Group's management and Steve will join our Executive Committee. Alunet
employs approximately 200 people.

 

Transaction Highlights

The consideration of approximately £29 million represents a multiple of 6.5x
Alunet's EBITDA for the year ended 31 December 2024.

 

Additional contingent consideration may become payable, subject to an earnout
mechanism, in four annual instalments beginning in 2026, based upon the EBITDA
of Alunet in the preceding calendar year. The maximum of £6 million, if
achieved, would result in a total consideration of £35 million, representing
a multiple of c.4x Alunet's projected EBITDA for the year ended 31 December
2028.

 

Approximately £1 million of the initial consideration will be in the form of
ordinary shares in Eurocell plc and satisfied out of shares currently held in
treasury, with the remainder payable in cash, funded from the Group's existing
£75 million revolving credit facility.

 

As at 31 December 2024, the Group's pre-IFRS 16 net debt was £3.1 million.
Pro forma for the acquisition, net debt is expected to be below 1.0x EBITDA at
31 December 2025.

 

The acquisition is expected to be accretive to the Group's underlying earnings
for 2025.

 

Darren Waters, Chief Executive Officer, commented:

"Alunet is a great acquisition for Eurocell. It significantly strengthens our
position in aluminium, enhances our composite door offering, and adds a
premium range of aluminium garage doors to our portfolio of home improvement
products.

 

"Alunet has grown rapidly since its establishment in 2013, and under
Eurocell's ownership, we will leverage our leading market positions in new
build, trade fabrication and distribution, to help the business reach its full
potential.

 

"On behalf of the Board I am delighted to welcome the management and employees
of Alunet to the Group."

 

This announcement contains inside information for the purpose of the
assimilated Market Abuse Regulation (EU) 596/2014 as it forms part of the law
of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018,
as amended.

 

 

Enquiries:

Eurocell plc

Darren Waters, Chief Executive
Officer                                +44 (0)
1773 842 105

Michael Scott, Chief Financial
Officer
+44 (0) 1773 842 140

Teneo

Nick de
Bunsen
+44 (0) 7825 575 258

 

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