Home improvements group announces sale of tiles business

Cheshire-based home improvements group, Norcros, has announced the sale of its Johnson Tiles business in the UK to its existing management.

The move follows a strategic review by the Wilmslow-headquartered business which employs around 2,300 people in the UK, Europe and South Africa, and operates seven UK brands: Triton, Merlyn, Grant Westfield, Vado, Croydex, Abode, and Johnson Tiles.

Based in Stoke-on-Trent, Johnson Tiles UK turned over £35.3 million, with operating profit of just £0.5 million. In the £1 million deal, which includes a modest earn out dependent on the 2028 equity value of the business, the trade and assets will transfer to a new company, established by current Managing Director Stephen Dixon and the rest of the management team.

The sale of Johnson Tiles is expected to complete during May 2024 after the conclusion of the customary employee consultation period. The proceeds of the sale will be used for general working capital purposes.

Thomas Willcocks, CEO of Norcros plc, said:

“In June 2023, we communicated our strategic priorities, namely Portfolio Development, Organic Growth, Operational Excellence and ESG and we will continue to ensure that our capital allocation is aligned accordingly. This sale will allow Norcros to focus on and accelerate the execution of our growth strategy. Johnson Tiles UK has been a long-standing partner of the Group and we thank them for their significant contribution. We wish Stephen and the team every success for the future.”