REG - Norcros PLC - Acquisition of Fibo Holding AS

NorcrosAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250715:nRSO0049Ra&default-theme=true

RNS Number : 0049R  Norcros PLC  15 July 2025

 

15 July 2025

 

 

ACQUISITION OF FIBO HOLDING AS (NORWAY) FOR AN ENTERPRISE VALUE OF NOK 618m
(c. £45m)

 

Norcros plc, the number one bathroom products business in the UK and Ireland
(the "Company"), announces that it has today entered into an agreement for the
acquisition of the entire issued share capital of Fibo Holding AS ("Fibo
Group") from FSN Capital for an Enterprise Value of NOK 618m (c. £45m) (the
"Acquisition").

 

Fibo Group

 

Fibo Group is a leading supplier of high-quality waterproof, decorative wall
panels. The business was founded in 1952 and has a modern production facility
in Lyngdal, Norway. For the financial year ended 31 December 2024, Fibo Group
reported net sales of NOK 856.3m (c. £63m) and EBITDA of NOK 100.0m (c.
£7.3m) (see note 2), with c. 70% sales from mainland Europe (with key
positions in Scandinavia and central Europe) and c. 30% from the UK. Fibo
Group has a skilled and experienced management team, which is led by Chief
Executive Officer Anders Carlson, who will join Norcros as part of the
transaction. The business has traded strongly through 2025, with year-to-date
results showing meaningful revenue and profit growth on the prior year.

 

Wall panels are easy to install, durable and sustainable, and are an
increasingly attractive alternative to tiles and other wall coverings. The
acquisition of Fibo Group aligns with the Company's strategy to acquire and
grow capital-light, scalable businesses operating in high-growth product
segments and is consistent with our medium-term strategic targets.

 

Fibo Group has well-established routes to market across Scandinavia, central
Europe and the UK. The market for bathroom products across Scandinavia and
central Europe is similar in size and consumer preferences to the UK market,
with customers recognising the value of trusted brands with strong
sustainability credentials. We are confident that with the addition of the
Fibo management team's knowledge and expertise, we will grow our share of
these attractive north European end markets in wall coverings and, in time,
the rest of our bathroom portfolio.

 

Transaction highlights:

·     The Acquisition brings another market leading brand to the Company
and will create a leading European waterproof wall coverings division focused
on panels. This is an attractive, high-growth market segment where the Company
already has an existing presence in the UK through Grant Westfield (acquired
by the Company in 2022). Fibo Group and Grant Westfield will together have
revenues in excess of £100m, with both businesses actively growing share at
the expense of tiles.

·    Following completion, Fibo Group will operate as an autonomous unit
within the Company. Once integrated, we expect the business to benefit from
our proven scale-based growth accelerators and operational efficiencies which
will augment Fibo's strong geographic growth plan.

·     The Acquisition creates a platform for further growth across
Scandinavia and central Europe, including cross selling the Company's broader
bathroom product ranges through Fibo's existing routes to market.

·      ROIC is greater than WACC at completion and the Acquisition will
be materially earnings accretive in the first full year of ownership.

 

Completion of the Acquisition is conditional upon clearance from the UK
Competition and Markets Authority ("CMA"). We expect this process to take
approximately three to four months.

 

In addition to the Acquisition's enterprise value, there will be a long-term
incentive and retention scheme for Anders Carlson and key Fibo personnel of up
to £3.5m.

 

The transaction will be financed using proceeds of the Company's existing
£130 million revolving credit facility. Leverage (see note 3), which was c.
0.8x at 31 March 2025, is expected to be in the region of c. 1.6x on a
proforma basis following completion of the transaction. Given Norcros' strong
cashflow conversion, we expect leverage to reduce thereafter.

 

Thomas Willcocks, Chief Executive Officer of Norcros, commented:

"This strategically aligned acquisition gives Norcros a strong platform to
accelerate our geographic expansion in this attractive, fast-growing segment
of the wall coverings market. Decorative wall panels is a product category
that we understand well following our acquisition of Grant Westfield in 2022.
Fibo Group have an excellent and well-established management team, a
well-invested modern operation, and importantly, a reputation that aligns with
our culture. We look forward to working with Anders and his team to accelerate
their growth plans as we take this next important step in building a
market-leading, capital-light, cash-generative bathroom business of scale."

 

Anders Carlson, Chief Executive Officer of Fibo Group, commented:

"We are excited to be joining Norcros and driving forward with the next stage
of our growth plan. We share a common understanding of the growth potential
and sustainability benefits of decorative wall panels as an emerging
alternative to tiles and together, we will be able to realise the benefits of
scale. The transaction will enable us to accelerate our growth plans, offering
opportunities for our staff and customers."

 

 

Notes:

1.     Monetary values are based on an NOK:£ exchange rate of 13.68:1
being the closing rate as at 11 July 2025

2.     EBITDA published in the Fibo Group annual accounts for the year
ended 31 December 2024, excluding non-recurring items and including IFRS 16 is
NOK 114.6m. EBITDA of NOK 100.0m deducts lease payments of NOK 14.6m

3.     Leverage defined as net debt divided by underlying EBITDA (excl.
IFRS16 liabilities)

 

 

For further information

 Norcros plc                                Tel: 01625 547700
 Thomas Willcocks, Chief Executive Officer
 James Eyre, Chief Financial Officer

 Hudson Sandler                             Tel: 0207 796 4133
 Nick Lyon

 Josh Hayler

 

 

About Norcros

Norcros is a market leading group of brands specialising in design led,
sustainable bathroom products across the UK, Ireland, South Africa, and select
export markets. Each of our brands offers mid-premium product ranges
distinguished by their innovation, design, and commitment to sustainability,
all backed by industry leading service to our trade and retail customers.

 

Through a strategic blend of acquisitions and organic growth, Norcros has
become the UK and Ireland's number one bathroom products group. We see
significant potential for further expansion within this large and fragmented
market, accelerating growth and capturing market share through continued
acquisitions, organic development, operational excellence, and meaningful ESG
capabilities.

 

Norcros encompasses the renowned brands, Triton, Merlyn, Grant Westfield,
Vado, Croydex, and Abode in the UK, and Tile Africa, TAL, and House of
Plumbing in South Africa.

 

Norcros is headquartered in Wilmslow, Cheshire and employs around 2,000
people. The Company is listed on the London Stock Exchange. For further
information please visit the Company website: http://www.norcros.com
(http://www.norcros.com)

 

Forward looking statements

This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Important Notices

The information contained in this announcement is inside information as
stipulated under the UK Market Abuse Regulation. Upon publication of this
announcement, this inside information is now considered to be in the public
domain. The information contained in this announcement is for information
purposes only and does not purport to be complete. The information in this
announcement is subject to change.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQUSSNRVRUBAAR