REG - Howden Joinery Grp - Howdens agrees to acquire DIY Kitchens

Howden JoineryAnnouncement

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RNS Number : 7319G  Howden Joinery Group PLC  03 June 2026

3 June 2026

HOWDEN JOINERY GROUP PLC ('HOWDENS')

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Howdens agrees to acquire DIY Kitchens for £390m

Highlights

§ Proposed acquisition of the parent company of Ultima Furniture Systems
Limited(1), trading as DIY Kitchens, for an enterprise value of £390m (on a
cash and debt-free basis); £292.5m in cash and £97.5m in Howdens' shares

§ DIY Kitchens is a high quality vertically integrated online kitchen
business through which Howdens will be able to access, directly, non-trade
consumers

§ Transaction multiple of approximately 8.5x LTM EBITDA to March 2026. The
transaction is expected to be immediately accretive to revenue, EBIT margin,
and EPS with strong cash generation and returns above the cost of capital

§ Howdens to retain a robust balance sheet, with no change to the previously
announced £100m share buyback programme in 2026 or its future capital
allocation priorities

Summary

Howdens today announces it has agreed to acquire the parent company of Ultima
Furniture Systems Limited, which trades as DIY Kitchens, for an enterprise
value of £390 million. DIY Kitchens is a vertically integrated kitchen
business that sells its products exclusively online, principally to
end-customers, particularly those looking to self-manage the purchase of their
kitchen.

DIY Kitchens is a highly profitable and growing enterprise with a proven
business model quite distinct from Howdens' own trade-only, full-service
model, through which the Group will be able to access, directly, 'non-trade'
consumers, thereby expanding its addressable customer base in the UK.  DIY
Kitchens' online channel provides consumers with self-service planning, design
and ordering tools and its model combines low selling overheads with
made-to-order manufacturing and strong cash generation supported by customer
prepayment.

Post completion DIY Kitchens will remain an online only business focused on
non-trade customers and will be operated separately from Howdens' own much
larger trade only business. Completion of the transaction remains subject to
customary regulatory approvals.

Strategic rationale

1.   DIY Kitchens is a successful business which will provide the Group with
an additional route to market and expand its accessible customer base in the
UK.

§ DIY Kitchens attracts customers who are motivated to plan and design their
own kitchen from home, with control over the ordering process through an
online platform.

§ This is supported by high quality, made-to-order product, combined with low
overheads.

§ It has consistently delivered strong growth and impressive returns and is
highly rated by its customers, with an 'Excellent' Trustpilot rating.

2.   Like Howdens, DIY Kitchens is well invested, scalable and vertically
integrated across its manufacturing and supply chain with excellent growth
prospects.

§ Both businesses have strong manufacturing and supply operations. DIY
Kitchens operates short production runs for a made-to-order offering, whereas
Howdens manufactures to stock, with typically long production runs.

§ Self-manufactured product represents around 40% of COGS and product quality
is also very high.

§ The online-only proposition is supported by two large destination showrooms
where customers can see displays of product. A third showroom is currently
under construction in Scotland.

3.   On completion, the Group will comprise two of the best business models
in the kitchen industry.

§ Both businesses are well placed to grow as each is focused on serving a
distinct customer base with very different requirements:

o Howdens: Builders trade with Howdens because of its end-to-end service offer
from stock to design, which is dedicated solely to their needs. This includes
confidential local pricing, backed by credit terms that help them manage their
cash flow, and an in-stock proposition. There are 893 locations across the UK,
which we see rising to 1,000 locations over time, staffed by depot teams,
including designers, to support throughout the planning and installation
process.

o DIY Kitchens: will remain an online-only offer focused on non-trade
end-customers, with a differentiated product range which is made-to-order and
which we see being on display in a small number of destination showrooms
nationwide over time.

Financial rationale

DIY Kitchens has delivered strong sales growth alongside attractive margins
and cash generation, supported by customer prepayment, and by the business not
offering consumer finance. In 2025, it generated revenue of £136m and EBIT of
£37m (a 27% EBIT margin). It has achieved revenue growth of over 17% per
annum over the past five years. The transaction includes freehold property
assets (valued at around £55m). While DIY Kitchens will operate as a
standalone business with its own infrastructure, we do see cost saving
opportunities over time. These will be focused at least initially on areas
where there is a common approach within raw materials, sourcing and machinery.

Transaction overview

The consideration of £390m will comprise of £292.5m of cash, which will be
funded by Howdens' existing cash resources and a new £240m bank facility.
Howdens will issue the seller(2) 12.7 million  new Howdens ordinary shares at
a total value of £97.5m, based on the volume weighted average of its share
price over the 5 days prior to the date of signing of 766 pence per share. The
enterprise value represents a multiple of approximately 8.5x the last twelve
months ("LTM") EBITDA for the period ended 31 March 2026.

Capital allocation and returns to shareholders

Howdens is a highly cash‑generative business with a disciplined approach to
capital allocation and DIY Kitchens is similarly cash generative. Following
completion of the acquisition, the Group will retain a robust balance sheet.
Howdens expects to remain in a net cash position post the transaction. The
Group will continue to prioritise organic growth, maintain a progressive
dividend policy, and will look to return surplus capital to shareholders while
the Group maintains a net cash position. The Group's existing dividend policy
and the previously announced £100m share buyback programme for 2026 are
unchanged.

Current trading

Howdens will announce its Half Year results on 23 July 2026. Year to date
trading has continued to be in line with our expectations and we remain on
track with the outlook for 2026.

Commenting on the transaction, Andrew Livingston, CEO of Howdens, said:

"Howdens' highly successful trade-only model is built around supporting solely
trade customers with outstanding in-stock availability, expert local depot
teams, and an end-to-end service from design through to delivery. The
acquisition of DIY Kitchens, which will be operated on a standalone basis,
adds a complementary very profitable, business to the Group, providing access
to non-trade end customers through its direct online channel with self-service
planning, design and ordering tools."

"DIY Kitchens shares many of the characteristics that underpin Howdens'
success including well-invested manufacturing, strong vertical integration,
scalable capabilities and a deep, well-embedded entrepreneurial culture.

"We are excited to welcome the DIY Kitchens team to Howdens. We have great
respect for the innovative business model they have built, and we look forward
to supporting the business's continued growth and investing behind its next
phase of development."

 

 For further information please contact
 Howden Joinery Group Plc                        Media Enquiries
 Andrew Livingston, CEO, Jackie Callaway, CFO    Martin Robinson, Kate Somerville, Teneo

 Tel: +44 (0) 207 535 1162                       Tel: +44 (0) 20 7260 2700
 Mark Fearon, Director of IR and Communications  howdens@teneo.com (mailto:howdens@teneo.com)

 Mobile: +44 (0)7711 875070
 A live webcast of the presentation including Q&A will be held on Wednesday
 3 June 2026 at 8:00 am BST for investors and analysts.

 Webcast and conference call details:

 Webcast registration link: https://brrmedia.news/HWDN_UC
 (https://brrmedia.news/HWDN_UC)

 Those wishing to ask a question as part of the Q&A session should dial in
 on the numbers below:
 Phone Numbers:

 UK: +44 (0) 207-544-1375 or toll free +44 (0) 800-279-9489

 International: +1-412-317-5413 (USA/Canada toll-free): +1-866-777-2509
 Confirmation code: Please quote Howdens' call
 The webcast will be recorded and available on our website after the event has
 finished at:

 www.howdenjoinerygroupplc.com (http://www.howdenjoinerygroupplc.com)

( )

(1) Silkstone Finance Limited, is the parent company of Ultima Furniture
Systems Limited trading as DIY Kitchens.

(2) Ling Chase Holdings Limited is an investment vehicle of the Ellis family
who founded the company.

Notes to editors:

1.  About Howden Joinery Group Plc

Howdens is the UK's number one specialist kitchen and joinery supplier. In the
UK, the company sells kitchens and joinery products to trade customers,
primarily local builders, through over 890 depots. In 2025, the Group
generated revenues of £2.4 billion and profit before tax of £344.9 million.
Howdens is a proud UK-based manufacturer, with a significant proportion of its
kitchen and joinery ranges manufactured in-house at its two principal
factories in Runcorn, Cheshire, and Howden, East Yorkshire. At the end of
2025, Howdens operated from 79 depots in France, Belgium and the Republic of
Ireland.

2.  Cautionary statement

Certain statements in this announcement are forward-looking. Although Howdens
believes that the expectations reflected in these forward-looking statements
are reasonable, we can give no assurance that these expectations will prove to
have been correct. Because these statements contain risks and uncertainties,
actual results may differ materially from those expressed or implied by these
forward-looking statements. We undertake no obligation to update any
forward-looking statements whether as a result of new information, future
events or otherwise.

3.  Market Abuse Regulation and responsibility

This announcement is deemed by Howdens to contain inside information for the
purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended
by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310. With the publication of this announcement, this information is now
considered to be in the public domain. The person responsible for arranging
the release of this announcement on behalf of Howdens is Forbes McNaughton,
Company Secretary.

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