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22nd September 2017
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Vado becomes part of Norcros
Norcros, the supplier of branded showers, tiles and adhesives with group operating companies including Triton Showers, Johnson Tiles and Norcros Adhesive - and which is also active overseas with operations in South Africa and Australia, has acquired brassware specialist Vado.
Vado was a privately owned business whose recent growth is said to have outstripped that of the bathroom brassware market within which it operates. The company began 25 years ago as a small operation distributing bathroom accessories, gradually developing its own products and brands... expanding into taps, showers and valves. It now has a workforce of around 150 people, with sales to over 60 countries worldwide, achieving more than £26 million in sales turnover.
Norcros has a global turnover of some £220 million per year, is headquartered in Wilmslow, Cheshire and the group employs around 1600 people.
Vado operates in the mid and high end markets boasting a broad customer base with particular strength within the contract and specification sector, where it enjoys an impressive high quality project list in residential, commercial, hotel and leisure developments throughout the world. In the retail sector it focuses on high end boutique retailers and merchants, with established relationships with over 1,000 customers.
The company says its sale is positive news for its employees, customers and suppliers. All jobs are to remain and the company is continuing to recruit due to growth and substantial plans for the future. Norcros has indicated its intention to leave Vado running under the current management and following the same strategy already in existence.
Vado Managing Director Jim Williams comments: "We are proud of what we have built, and we now look forward to being part of a group giving us even more financial strength and networks across the globe to support our ambitious growth plans.
"The Vado team is looking forward to working with Norcros to develop further business opportunities and to grow as part of a larger organisation."
Vado has consistently delivered a strong revenue performance with a compound annual growth rate of 16% per annum over the last three years. For the year ending 31st December 2012, Vado's audited results show a revenue of £25.6 million, an EBITDA of £2.5 million and profit before tax of £2.1 million. Vado has historically delivered strong cash conversion and it is expected to have a positive impact on Group operating cash flow.
Whilst Norcros continues to grow successfully through organic means, this acquisition is an important step in supporting and accelerating the growth strategy. The board expects the acquisition to be earnings enhancing immediately. Norcros believe that the acquisition of Vado will bring a number of compelling benefits to the group, including the expansion of the group's product and brand portfolio, synergies within the group, and to supplement the group's leading market position in South Africa and its growing presence in sub Saharan Africa.
Nick Kelsall, Norcros Group CEO says: "The acquisition of Vado and its premium brands and excellent product offering is an exciting addition to the Group's portfolio. I have been impressed with the commitment and passion of Vado's management and employees and am confident that they and the business will continue to thrive under Norcros ownership.
"This transaction represents the first step in our enhanced growth strategy of making selective and complementary acquisitions which have the capability of improving profitability as well as broadening our brand portfolio, product offering and distribution channels."
5th April 2013