Genuit Group plc (‘LON:GEN), the UK’s largest provider of sustainable water, climate and ventilation solutions for the built environment, has announced that it has acquired Davidson Holdings Limited for a total consideration of £49.0 million on a debt-free and cash-free basis.
The Business comprises leading brands in the plumbing and heating sectors including Salamander Pumps, Cistermiser, Talon and Keraflo. These brands have strong market positions, primarily in the UK Repair, Maintenance and Improvement sectors of the residential and commercial segments, and benefit from sustainability-led growth drivers. The Business is expected to deliver full year 2025 revenue of £32.8 million.
The consideration has been fully funded from Genuit’s existing debt facilities. The Business will form part of the Group’s Sustainable Building Solutions (‘SBS’) Business Unit.
Acquisition Highlights
· Increases the breadth of Genuit’s portfolio sold through the merchant channel to plumbing and heating engineers and commercial contractors. Growth synergies are anticipated from leveraging Genuit’s broad routes to market and demand creation and specification selling model.
· Deploying the Genuit Business System (‘GBS’) and utilising Genuit’s purchasing scale are expected to unlock productivity and cost synergies from 2026 onwards.
· Davidson’s portfolio includes products and solutions to reduce water usage, consistent with Genuit’s Sustainable Solutions for Growth strategy. Water conservation to address scarcity of supply is expected to be an increasing focus for developers, Local Authorities and water utility companies because of climate change.
Financial Highlights
· Total consideration of £49.0 million on a debt-free and cash-free basis1, equivalent to 8.5x EBITDA2, based on year ending April 2025
· Expected to be EPS accretive during the first full year of ownership with an adjusted operating margin above 20%, in line with Genuit’s medium term target
· Post acquisition ROIC to exceed WACC during second full year of ownership, excluding future synergies
· Post the Acquisition it is expected that 2025 year end leverage will be circa 1.6x on a pro forma basis
Commenting on the Acquisition, Joe Vorih, Chief Executive Officer, said:
“We are delighted to welcome our new colleagues to Genuit. Davidson is an excellent fit with the existing businesses within SBS, adding to our portfolio of strong brands alongside Polypipe, Manthorpe and Terrain. We see opportunities to grow Davidson’s products by utilising our existing strong market positions, as well as combining certain product ranges to provide higher value-added solutions to customers. Additionally, by deploying the lean techniques of GBS, and our procurement scale, we expect to deliver efficiency improvements in the near future. This transaction follows our recent acquisition of Monodraught and demonstrates the strength of our M&A pipeline”.
Notes:
1 Based on locked-box accounts at 30 June 2025
2 Underlying EBITDA is operating profit from continuing operations before exceptional items, intangibles, amortisation and depreciation
