In a bold move to expand its presence and strengthen its position in the industry, Inwido, Europe’s leading window group, has successfully acquired Sidey Group, Scotland’s largest window and door company. This groundbreaking deal marks Inwido’s largest acquisition to date, enabling the company to establish a market-leading position in Scotland and further cement its status as a key player in the global market for windows and doors.
The Growth Story of Sidey Group and its Strategic Importance
Sidey Group, founded in 1932 in Perth, Scotland, has emerged as a market leader in the renovation of social housing. With approximately SEK 800 million in sales and an impressive EBIT margin of 15% in the last twelve-month period, the company has experienced strong growth. This acquisition not only grants Inwido access to Scotland’s thriving market but also presents an opportunity to leverage Sidey Group’s expertise and solid profitability.
Synergies and Collaborations Unlock New Opportunities
Henrik Hjalmarsson, President and CEO of Inwido, recognizes the immense potential of this acquisition. By joining forces with Sidey Group, Inwido can harness the power of synergies through joint purchasing, production insourcing, and other collaborations within the Inwido Group. This strategic integration promises a significant boost in operational efficiency and market competitiveness.
A Winning Combination: Sidey Group’s Product Portfolio and Market Reach
Sidey Group’s broad product portfolio encompasses windows, doors, carports, and roof replacements. In addition to serving the public sector, the company caters to professional installers and private homeowners, ensuring a diverse and extensive customer base. By acquiring Sidey Group, Inwido gains a comprehensive product range and an extended market reach, enabling the company to cater to a wider range of customers across Europe.
A Testament to Future Growth Prospects
The future is bright for Sidey Group, particularly in light of increased legal requirements for energy efficiency improvements in Scottish homes. As demand for sustainable solutions continues to rise, Sidey Group is well-positioned to capitalize on this trend and drive further growth. Moreover, the company has strengthened its foothold in the west of Scotland through the acquisition of Walker Profiles in 2017, which further bolsters its market presence and expansion potential.
Implications for Shareholders and Financial Performance
With Sidey Group’s acquisition, Inwido aims to establish a strong market position in Scotland and enhance its financial performance. The deal, financed through available cash, will have a positive impact on Inwido’s earnings per share in 2023. Initially, Inwido will acquire 70% of the shares at a multiple just below 6 times operating EBIT in the last twelve-month period, while the existing owners, including Charles Arbuthnott, Michael Dobson, and the management team, will retain 30% of the shares for at least three and a half years. The purchase price for the remaining shares will be determined based on Sidey Group’s future financial development.
FAQs: Key Questions Answered
What is the significance of Inwido’s acquisition of Sidey Group?
Inwido’s acquisition of Sidey Group allows the company to establish a market-leading position in Scotland, expanding its reach and strengthening its presence in the industry.
How does Sidey Group’s product portfolio complement Inwido’s offerings?
Sidey Group’s comprehensive product portfolio, including windows, doors, carports, and roof replacements, enhances Inwido’s range of offerings and enables the company to cater to a wider customer base.
What are the anticipated synergies and collaborations resulting from this acquisition?
Inwido aims to leverage synergies through joint purchasing, insourcing of production, and collaborations within the Inwido Group, thereby improving operational efficiency and market competitiveness.
How will the acquisition impact Sidey Group’s growth prospects?
The acquisition positions Sidey Group for continued growth, particularly due to the increased demand for energy efficiency improvements in Scottish homes. The company is well-equipped to capitalize on this trend.
What are the financial implications of the acquisition for Inwido and its shareholders?
Inwido’s strong balance sheet enables the acquisition, which will have a positive impact on the company’s earnings per share in 2023. The purchase price for the remaining shares will be based on Sidey Group’s future financial performance.
|Sales (last 12 mos)||Approx. SEK 800M|
|EBIT Margin||Approx. 15%|
|Remaining Stake||30% (held by owners)|
|Impact on EPS||Positive in 2023|
Bernie Grady is a technology and business journalist who writes about trending topics in the world of technology, entertainment, and business. She has a keen eye for spotting new trends and loves to share her insights with her readers. Bernie has been writing professionally for over 10 years and has experience covering a wide range of topics. When she’s not writing, she enjoys spending time with her family and friends.