Norcros, a Wilmslow-headquartered shower and tile manufacturer, is all set to complete a £12.1 million deal through its South African business. A conditional agreement has been struck for Norcros South Africa (Proprietary) to buy RAP Plumbing Supplies (Proprietary).
The company trades as House of Plumbing, specialising in providing materials for the commercial segments of the market and supplying contractors, maintenance plumbers and the public.
“I am excited by the acquisition of House of Plumbing as it will enhance our product offer to the important commercial and specification segments of the South African market where we have been successfully building our business,” said Chief executive Nick Kelsall.
“The acquisition also offers a number of opportunities to drive growth through geographical expansion and through our existing distribution channels. I look forward to working with Robin and his team to further develop and grow the business,” Nick added.
The acquisition is considered to be a “further step” in Norcros’ growth strategy to expand its bathroom product portfolio and follows on from a number of successful deals, most recently that of Merlyn.
House of Plumbing operates from three branches in Johannesburg, Pretoria and Lephalale, and employs a workforce of 102. The experienced management team – led by managing director Robin Roberson – will stay with the business.
“We have been impressed by the energy and enthusiasm of the Norcros management and look forward to working with them to capitalise on the many new opportunities that being part of the Norcros Group will bring,” commented Robert.
For the year to 30 April 2018, House of Plumbing’s audited financial statements showed revenue of ZAR 392 million (£22.1 million), EBITDA of ZAR 33 million (£1.9 million) and profit before tax of ZAR 34 million (£1.9 million).