Deal secures UK market entry for Swedish group

Background

Having supported FM Mattsson Mora Group – a leading international supplier of kitchen and bathroom taps – on its acquisition of the Netherlands-based Hot Bath BV, and its Italian sister company Hot Bath SRL, FRP was retained to review the UK market for potential acquisitions for the Swedish Nasdaq-listed Group. The team undertook a wide-reaching market search for businesses fitting the Group’s criteria, using in-house research teams and extensive market knowledge. FRP approached Aqualla Brassware Limited, a fast-growing supplier of bathroom products based in Northern Ireland.

Action

FRP’s Corporate Finance team contacted Aqualla’s shareholders to discuss the possibility of a sale. Following initial discussions, the fit between the two businesses was evident, so the Group decided to put forward an offer to acquire Aqualla. Our team provided valuation and deal structuring advice, supported the negotiation of heads of terms, and project managed the deal to completion less than three months from the initial offer. FRP also provided commercial advice on all aspects of the transaction, including sales and purchase agreement and working capital.

Outcome

The acquisition of Aqualla for an initial £11.2 million provides a strategic entry into the UK and Republic of Ireland markets for FM Mattsson Mora, with an exciting portfolio of complementary and highly regarded products. Aqualla will continue to operate as a free-standing business unit supported by the Group, with its current management team remaining in place. The deal demonstrated FRP’s ability to deliver strategic, cross-border transactions, providing high-quality technical advice and swift and efficient deal-making.

“We had no plans to sell, but the cultural and strategic fit between the two businesses was clear from day one, and we believe there could be no better long-term home for Aqualla and our people.” Steven Allaway, founder and Managing Director of Aqualla