Specialist materials firm agrees to purchase Westbond's entire share capital for up to £10.9m
Bonar Floors, a subsidiary of specialist materials company Low & Bonar, has bought carpet tile producer Westbond from Cambrosa Holdings.
The company said it had agreed to purchase Westbond’s entire issued share capital for up to £10.9m. An initial payment of £6.4m has been paid in cash.
Bonar Floors said it was expecting benefits from the cross-selling of products as well as cost savings from linking the two companies.
Paul Forman, Low & Bonar group chief executive, said: “We are delighted to be announcing this transaction. Westbond offers an excellent opportunity to pursue our organic and acquisition driven growth strategy in both divisions following the successful acquisition of the MTX Group which we completed last week.”
Mark Sefton, Bonar Floors Division managing director, added that the Westbond brand and product range was “highly complementary” to the company’s tufted carpet tile business.
He said: “The combination of Westbond and Bonar Floors will create a very strong player in the growing European contract tile market.”
In the 12 months to 30 April, 2007, Westbond made a pre-tax profit of £0.6m and on 30 April it had gross assets of £3.8m.