UK's Howden Joinery to buy DIY Kitchens in $525 million growth deal
UK's Howden Joinery to buy DIY Kitchens in $525 million growth deal June 3 (Reuters) - British kitchen and interior fittings supplier Howden Joinery HWDN.L said on Wednesday it will acquire online retailer DIY Kitchens in a £390 million ($525 million) deal to expand into direct-to-consumer sales, sending its shares up as much as 5%.
Here are some more details:
Howden said the deal is expected to be immediately accretive to its revenue, EBIT margin, and EPS, with strong cash generation
The deal includes £292.5 million in cash and £97.5 million in Howden shares, along with the company taking on DIY Kitchens' debt
The acquisition "adds a complementary very profitable, business" to the group - Howden CEO Andrew Livingston
DIY Kitchens sells made-to-order kitchen units directly to customers through its online platform and will add to Howden's trade-focused, depot-led operations
DIY Kitchens generated revenue of about £136 million in 2025 and operating profit of £37 million
"Not only is it complementary by giving Howden access to a new customer base through a fast-growing player, the financial metrics also look compelling," Jefferies analysts said, adding the deal was "strategically and financially savvy"
Howden also said it was on track to meet its 2026 outlook
At 0809 GMT, Howden shares were up 3% at 778 pence, making them the top gainer on the FTSE 100 .FTSE.
($1 = 0.7429 pounds)
(Reporting by Neeshita Beura in Bengaluru; Editing by Eileen Soreng)