# Genuit acquires Davidson Holdings for £49m to expand plumbing and heating portfolio

- Link: https://www.directorstalkinterviews.com/genuit-acquires-davidson-holdings-for-49m-to-expand-plumbing-and-heating-portfolio/4121217990
- Published: 2025-09-29T08:04:04+01:00
- Author: Amilia Stone

**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](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)-
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 basis^(1),
equivalent to 8.5x EBITDA^(2)**^(,)** 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

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