LONDON: Eurocell plc, a leading UK manufacturer, distributor, and recycler of innovative PVC window, door, and roofline products, announced on Friday the completion of its acquisition of Alunet for £29 million.
The purchase price, free of debt and cash, includes an initial payment of £22 million and deferred consideration of approximately £7 million, payable in four annual instalments beginning in 2026. There is also the potential for performance-related payments of up to £6 million over the same period.
The acquisition advances Eurocell’s strategy, significantly strengthening its position in residential aluminium systems and composite doors, and adding garage doors to its product portfolio.
Alunet encompasses a stable of fast-growing home improvement brands, comprising four businesses: Alunet Systems, an aluminium systems house focused on the residential sector; Comp Door, a manufacturer of premium solid core timber doors; JDUK, a supplier of sectional aluminium garage doors and components; and UK Doors (Midlands), a manufacturer of aluminium roller shutter garage doors.
For the year ended December 31, 2024, Alunet reported unaudited revenue of £43 million and EBITDA of £4.5 million (pre-IFRS 16). Alunet’s Chief Executive Steve Hudson will join Eurocell’s Executive Committee, bringing approximately 200 employees to the Group.
The £29 million consideration represents a multiple of 6.5x Alunet’s EBITDA for the year ended December 31, 2024. Additional contingent consideration may be payable based on Alunet’s EBITDA in the preceding calendar year, with a maximum potential of £6 million, bringing the total consideration to £35 million.
Approximately £1 million of the initial consideration will be in the form of Eurocell plc ordinary shares, with the remainder payable in cash, funded from the Group’s existing £75 million revolving credit facility. As of December 31, 2024, Eurocell’s pre-IFRS 16 net debt was £3.1 million. Pro forma for the acquisition, net debt is expected to be below 1.0x EBITDA at December 31, 2025.
The acquisition is anticipated to be accretive to Eurocell’s underlying earnings for 2025.
Darren Waters, Chief Executive Officer, commented: “Alunet is a great acquisition for Eurocell. It significantly strengthens our position in aluminium, enhances our composite door offering, and adds a premium range of aluminium garage doors to our portfolio of home improvement products.
“Alunet has grown rapidly since its establishment in 2013, and under Eurocell’s ownership, we will leverage our leading market positions in new build, trade fabrication and distribution, to help the business reach its full potential.
“On behalf of the Board I am delighted to welcome the management and employees of Alunet to the Group.”