Kilkenny headquartered Merlyn Industries acquired by Norcros plc in £60.0m deal
Merlyn Industries, the UK and Ireland’s market leading premium shower enclosures company, is being acquired by Norcros plc for £60.0m on a debt free, cash free basis (subject to certain adjustments) from its shareholders the Hoyne family and Dublin based investment firm, Broadlake. Merlyn was established in 2000, by EY Entrepreneur of the Year Finalist Michael Hoyne and the company employs 58 staff based in Kilkenny, a 16 person sales team in the UK and has 9 people in Asia.
Norcros plc is a group of market leading businesses supplying innovative, branded bathroom and kitchen products with operations in the UK and South Africa. Its portfolio of well-known brands includes Triton, VADO, Croydex and Johnson Tiles.
Merlyn revenues for the year ended 31 March 2017 were £30.7m and Net Profit was £5.0m. Broadlake acquired a 30% stake in Merlyn in 2015 and has supported the continued expansion of the business. Today, approximately 85% of the company’s products are sold in the UK and Mainland Europe.
Merlyn will continue to be run by its existing management team led by company CEO, Charlie Soden and under Norcros’s ownership will further develop its Kilkenny operations, focusing on the significant opportunities to grow the current business.
Merlyn is a compelling strategic fit for Norcros and complements the Group’s existing portfolio of products and brands. The acquisition of Merlyn is consistent with the Group’s objective of expanding further into the bathroom product sector which will enable them to offer a ‘one stop shop’ to the trade and specification segments in the UK.
Commenting on the transaction:
Michael Hoyne (Merlyn Founder) said:
“Today is a special day in the development of Merlyn. With the support of Norcros, the business is well placed now to continue to grow and expand. This partnership will accelerate the company’s international growth and new product development ambitions. The last 17 years success is as a result of the united ambition and commitment of every single Merlyn employee. I am very proud of what we have all achieved and I wish Charlie and the whole team every success on their next phase of growth.”
Charlie Soden (Merlyn CEO) said:
“We are excited about this opportunity to deliver on our ambitious growth plans. This acquisition will give us access to more customer channels and I believe that Norcros is the very best partner for Merlyn. We both want to make Merlyn stronger, bigger, better and grow faster but also to maintain our culture of innovation, quality and service. It’s business as usual for our staff, customers and suppliers.”
Pete Smyth (Broadlake Founder & CEO) said:
“The journey with Michael and the senior management team is a perfect example of where Broadlake’s supportive model works. We backed a great team and helped them develop and execute their growth strategy. For the Broadlake team it’s very rewarding to help another ambitious Irish SME to realise its potential.”
Nick Kelsall (Norcros Group Chief Executive) said:
“The acquisition of Merlyn with its premium brands and market leading positions is an exciting addition to the Group, substantially broadening our bathroom product offering. Merlyn’s focus on design, new product development and its standard of customer service will significantly enhance the Group’s portfolio. I look forward to working with Charlie and his team, whose experience and enthusiasm for the business has impressed greatly, as we look to grow and develop the Merlyn business further.”
NOTE: Photos to follow from Jason Clarke – 087 252 0782
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For further Broadlake and Merlyn information contact:
Geraldine O’Neill PR +353 87 686 2995 / +353 1 598 9400
Broadlake is a family investment company that typically invests €2-10m in established and growing businesses. It has invested in seven businesses to date including Vita Liberata the International Skin care brand, 2468 Group the acquisitive Office Services business, TTM the International Healthcare Recruitment & Services company and Conveyortek the Northern Irish based Engineering company.
Twitter: @wearebroadlake @broadlakepete
Notes to Editors
- Norcros is a leading supplier of high quality and innovative showers, taps, bathroom accessories, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa.
- Based in the UK, Norcros operates under six brands:
- Triton Showers – Market leader in the manufacture and marketing of showers in the UK
- Vado – A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves
- Croydex – A market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories
- Abode – A leading niche designer and distributor of high quality kitchen taps, bathroom taps and kitchen sinks
- Johnson Tiles – A leading manufacturer and supplier of ceramic tiles in the UK
- Norcros Adhesives – Manufacturer of tile & stone adhesives, grouts and related products
- Based in South Africa, Norcros operates under three brands:
- Tile Africa – Chain of retail stores focused on ceramic and porcelain tiles, and associated products such as sanitary ware, showers and adhesives
- Johnson Tiles South Africa – Manufacturer of ceramic and porcelain tiles
- TAL – The leading manufacturer of ceramic and building adhesives