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!.
Project Purple represents the opportunity to acquire 100% of the share capital of is a designer, installer and manufacturer of smoke control systems.
Designs manufactures & supplies bespoke testing equipment automated assembly line equipment assembly stations and semi or fully-automated assembly lines. Machines are designed to improve safety throughput efficiency & quality of output for a client b...
The company is well-established and operates from a third party owned quarry in Lincolnshire. The business quarries, manufactures and supplies a range of aggregate products, gabion stone and provides associated products and services throughout the Un...
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.