A firm making thousands of kitchen units for the social housing sector has been bought by a Swedish firm in a £34m deal.
Rixonway Kitchens, which employs more than 500 people at its Dewsbury headquarters, has been sold by private equity firm August Equity to Stockholm-based Nobia AB in a deal which strengthens the Swedish firm’s presence in the UK market.
And employees have been told its business as usual for everyone employed at the firm.
Rixonway Kitchens is one of the UK’s leading manufacturer of rigid kitchens for social housing and private developments as well as a major supplier to builders’ merchants.
The company has manufactured kitchens since 1978 and following a management buy-out in 2006 – led by chief executive Paul Rose – has built up the business to achieve current revenues of about £40m.
Rixonway operates from a 177,000sq ft factory at Shaw Cross Business Park and supplies customers UK-wide.
Nobia is one of Europe’s leading kitchen specialists with operations in several European countries. The company, formed in 1996, manufactures and sells kitchens through a portfolio of 20 brands. It already has a significant presence in the UK through brands including Magnet and Interior Solutions.
The company said taking over Rixonway would enable Nobia to “significantly” increase its presence in the UK contract market and further strengthened its UK manufacturing base. It said the acquisition would bring operational and commercial benefits for both businesses.
Mr Rose, who will stay with the firm, said: “It’s business as usual! The acquisition of Rixonway by the Nobia group is a great strategic fit for both businesses. Being part of a larger group will open up many opportunities for the business and we look forward to working closely with Nobia to realise our future growth plans.”
Peter Kane, head of Nobia Western Europe, said: “It is very exciting for Nobia to strengthen its presence in the project market. The addition of Rixonway will complement our approach to the UK market very well. We welcome Paul and the team into the Western Europe Region and look forward to working together, sharing best practice and growing market share.”
Philip Rattle led the original buy-out of Rixonway and exit alongside Mike Biddulph for August Equity. The sellers were advised by Paul Trickett and Matthew Nicholson, of the corporate finance team at Deloitte in Leeds. Macfarlanes LLP provided legal advice. Ian Gilbert, of Walker Morris, provided legal advice to management.
Mr Trickett said: “Rixonway is a great manufacturing business with a strong management team and we’re pleased to have worked with them and August to ensure the business can move on to the next stage of its development as part of a major European kitchen specialist like Nobia.
“I am confident the partnership with Nobia will help both businesses realise their exciting growth ambitions and continue to drive growth in the Yorkshire manufacturing sector.”