REG - Genuit Group PLC - Acquisition of Davidson Holdings

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RNS Number : 1023B  Genuit Group PLC  29 September 2025

Genuit Group Plc

Acquisition of Davidson Holdings Limited

 

Strengthening Portfolio in Sustainable Building Solutions

 

Genuit Group plc ('Genuit' or the 'Group'), the UK's largest provider of
sustainable water, climate and ventilation solutions for the built
environment, today announces that it has acquired Davidson Holdings Limited
('Davidson', or the 'Business') for a total consideration of £49.0 million on
a debt-free and cash-free basis (the 'Acquisition').

 

The Business comprises leading brands in the plumbing and heating sectors
including Salamander Pumps, Cistermiser, Talon and Keraflo.  These brands
have strong market positions, primarily in the UK Repair, Maintenance and
Improvement sectors of the residential and commercial segments, and benefit
from sustainability-led growth drivers.  The Business is expected to deliver
full year 2025 revenue of £32.8 million.

 

The consideration has been fully funded from Genuit's existing debt
facilities.  The Business will form  part of the Group's Sustainable
Building Solutions ('SBS') Business Unit.

 

Acquisition Highlights

 

·    Increases the breadth of Genuit's portfolio sold through the merchant
channel to plumbing and heating engineers and commercial contractors. Growth
synergies are anticipated from leveraging Genuit's broad routes to market and
demand creation and specification selling model.

·   Deploying the Genuit Business System ('GBS') and utilising Genuit's
purchasing scale are expected to unlock productivity and cost synergies from
2026 onwards.

·   Davidson's portfolio includes products and solutions to reduce water
usage, consistent with Genuit's Sustainable Solutions for Growth strategy.
Water conservation to address scarcity of supply is expected to be an
increasing focus for developers, Local Authorities and water utility companies
because of climate change.

 

Financial Highlights

 

·     Total consideration of £49.0 million on a debt-free and cash-free
basis(1), equivalent to 8.5x EBITDA(2)(,) based on year ending April 2025

·    Expected to be EPS accretive during the first full year of ownership
with an adjusted operating margin above 20%, in line with Genuit's medium term
target

·      Post acquisition ROIC to exceed WACC during second full year of
ownership, excluding future synergies

·      Post the Acquisition it is expected that 2025 year end leverage
will be circa 1.6x on a pro forma basis

About Davidson Holdings Limited

 

Davidson is a group of three businesses with manufacturing sites in
Sunderland, Reading and Gillingham. Its key brands include Salamander shower
and boosting pumps, Cistermiser water saving sanitary solutions, Keraflo cold
water tank control valves, and Talon pipe clips and fixings. These brands
occupy leading positions in their segments and are sold through plumbing and
heating distributors and merchants. The Business is increasingly focused on
solutions that use less water, which are in growing demand given stressed
water supply to homes and increasing water costs in commercial and public
buildings. The Business primarily serves the UK market, with a small but
growing proportion of export revenue.

 

Commenting on the Acquisition, Joe Vorih, Chief Executive Officer, said:

 

"We are delighted to welcome our new colleagues to Genuit. Davidson is an
excellent fit with the existing businesses within SBS, adding to our portfolio
of strong brands alongside Polypipe, Manthorpe and Terrain. We see
opportunities to grow Davidson's products by utilising our existing strong
market positions, as well as combining certain product ranges to provide
higher value-added solutions to customers. Additionally, by deploying the lean
techniques of GBS, and our procurement scale, we expect to deliver efficiency
improvements in the near future.  This transaction follows our recent
acquisition of Monodraught and demonstrates the strength of our M&A
pipeline".

 

 

Notes:

 

1 Based on locked-box accounts at 30 June 2025

2 Underlying EBITDA is operating profit from continuing operations before
exceptional items, intangibles, amortisation and depreciation

 

Enquiries:

 

Genuit Group
plc:
  Telephone: +44 (0) 1138 315315

Joe Vorih, Chief Executive Officer

Tim Pullen, Chief Financial Officer

 

Headland Consultancy:

 Matt Denham      Telephone: + 44 (0)20 3805 4822
 Chloe Francklin  Email: genuit@headlandconsultancy.com (mailto:genuit@headlandconsultancy.com)

Notes to Editors:

 

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water, climate
and ventilation solutions for the built environment. Genuit's solutions allow
customers to mitigate and adapt to the effects of climate change and meet
evolving sustainability regulations and targets.

 

The Group is divided into three Business Units, each of which addresses
specific challenges in the built environment:

 

·      Climate Management Solutions - Addressing the drivers for low
carbon heating and cooling, and clean and healthy air ventilation.

·      Water Management Solutions - Driving climate adaptation and
resilience through integrated surface and drainage solutions.

·      Sustainable Building Solutions - Providing a range of
construction solutions to reduce the carbon content of the built environment.

 

Across these Business Units, Genuit's brands are some of the most
well-established and innovative in the industry, including Polypipe, Nuaire
and Adey.

 

The Group primarily serves the UK and European building and construction
markets with a presence in Italy and the Netherlands and sells to specific
niches in the rest.

 

 

 

 

 

 

 

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