Thu, 01 Dec 2022 | BUSINESS SALE
Industrial products firm Wixroyd Group has been acquired by component parts manufacturer and distributor Essentra in a deal that could rise to £36.5 million. Essentra will pay an initial cash consideration of £29.5 million for the group, with up to £7 million in a deferred earn-out consideration.
If the full £36.5 million is paid by Essentra, the deal would represent slightly over a 14x multiple of Wixroyd Group’s EBITDA of £2.6 million for the year ending December 31 2021, generated on revenues of £10.4 million.
Wixroyd Group is based in Chichester and is comprised of a trio of UK-based brands: Wixroyd; Automation and Teknipart. The group has a history dating back 70 years and provides components for around 9,000 customers, with a portfolio of over 100,000 products.
The deal is Essentra’s first since it announced its new strategy as a “pure-play components business”. Over the past ten years, the Kidlington-headquartered company has built an extensive track record of acquiring businesses in the components market.
The acquisition will expand Essentra’s offering of hardware components and the firm says that it will create "significant additional cross-selling opportunities" across a range of its end markets, with the group’s Continental Europe customer base being the initial focus.
Essentra Chief Executive Designate Scott Fawcett said the acquisition “will further strengthen Essentra's expertise and leading product portfolio to the benefit of our customers.”
Fawcett added: "This transaction is a great example of the components strategy in action as we leverage our strong balance sheet and the significant opportunities for product expansion in highly fragmented markets to accelerate our potential as a pure-play components business."
In a joint statement, Wixroyd Group Managing Director Marcus Iafrate and Wixroyd Group Chair Anthony Iafrate said: "The next phase in Wixroyd's development is hugely exciting. We have seen substantial growth in our business, predominately in the UK, and look forward to scaling this to a wider, more international customer base, in the next phase of our development."
Find businesses for sale here.
If you are looking for an exit, we can help!.
Offering one-stop design-to-installation and maintenance service of creative high-impact signage for all applications.
For over 12 years our client has been manufacturing a market leading product, supplying the candle manufacturing sector, supporting all types of clients from large producers down to small hobbyists. The knowledgeable and friendly staff help clients s...
The retirement sale of a very well-established manufacturer of industrial paints and coatings, providing a wide range of coating products to a variety of customers.
06
|
Nov
|
PE-backed FutureLife buys Bristol fertility clinic | BUSINESS SALE
The Bristol Centre for Reproductive Medicine (BCRM) has been...
06
|
Nov
|
QC Polymer's assets up for sale after administration | ADMINISTRATION
A West Midlands-based plastic recycler QC Polymer has gone i...
06
|
Nov
|
Management buy-back for Morph group | MBO/MBI
Edinburgh-based AFG Media has re-taken full control of the b...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.