Acquisition of Davidson Holdings

Genuit Group Plc

Acquisition of Davidson Holdings Limited

Strengthening Portfolio in Sustainable Building Solutions

Genuit Group plc ('Genuit' or the 'Group'), the UK's largest provider of sustainable water, climate and ventilation solutions for the built environment, today announces that it has acquired Davidson Holdings Limited ('Davidson', or the 'Business') for a total consideration of £49.0 million on a debt-free and cash-free basis (the 'Acquisition').

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-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 basis1, equivalent to 8.5x EBITDA2, 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 

About Davidson Holdings Limited

Davidson is a group of three businesses with manufacturing sites in Sunderland, Reading and Gillingham. Its key brands include Salamander shower and boosting pumps, Cistermiser water saving sanitary solutions, Keraflo cold water tank control valves, and Talon pipe clips and fixings. These brands occupy leading positions in their segments and are sold through plumbing and heating distributors and merchants. The Business is increasingly focused on solutions that use less water, which are in growing demand given stressed water supply to homes and increasing water costs in commercial and public buildings. The Business primarily serves the UK market, with a small but growing proportion of export revenue.

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

Enquiries:

Genuit Group plc: Telephone: +44 (0) 1138 315315

Joe Vorih, Chief Executive Officer

Tim Pullen, Chief Financial Officer

Headland Consultancy:

Notes to Editors:

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water, climate and ventilation solutions for the built environment. Genuit's solutions allow customers to mitigate and adapt to the effects of climate change and meet evolving sustainability regulations and targets.

The Group is divided into three Business Units, each of which addresses specific challenges in the built environment:

· Climate Management Solutions - Addressing the drivers for low carbon heating and cooling, and clean and healthy air ventilation.

· Water Management Solutions - Driving climate adaptation and resilience through integrated surface and drainage solutions.

· Sustainable Building Solutions - Providing a range of construction solutions to reduce the carbon content of the built environment.

Across these Business Units, Genuit's brands are some of the most well-established and innovative in the industry, including Polypipe, Nuaire and Adey.

The Group primarily serves the UK and European building and construction markets with a presence in Italy and the Netherlands and sells to specific niches in the rest.