Howden Joinery Group (HWDN) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of a high-quality, vertically integrated online kitchen business provides direct access to non-trade customers and expands the addressable UK market.

• DIY Kitchens' online-only, made-to-order model complements the trade-focused, full-service approach, allowing both brands to serve distinct customer segments.

• Both businesses are high growth, high margin, vertically integrated, and have outperformed the fragmented UK kitchen market.

• DIY Kitchens attracts self-managing customers seeking control and convenience, with a scalable, entrepreneurial culture.

• The acquisition is incremental, providing a new growth avenue while maintaining focus on the core trade business.

Financial terms and conditions

• Enterprise value of £390 million, with £292.5 million in cash and £97.5 million in new shares issued to vendors.

• Valuation at 8.5x LTM EBITDA (to March 2026).

• DIY Kitchens generated £136 million in revenue and £37 million EBIT (27% margin) in 2025.

• Acquisition includes freehold property assets valued at £55 million.

• Funded via existing cash and a new £240 million bank facility; group expects to remain in a net cash position post-transaction.

Synergies and expected cost savings

• Initial cost savings anticipated in raw materials, sourcing, and machinery.

• Both businesses benefit from efficient cost bases, strong vertical integration, and manufacturing operations.