Clearwater Corporate Finance has advised the Manchester office of Lloyds TSB Development Capital on its acquisition of Bolton-based PJH – a leading kitchen and bathroom distributor.
The £33 million deal which sees LDC investing £10 million for a majority shareholding and HSBC providing a £27.5 million debt package will ensure the company continues to build on is solid foundations.
Formed in 1972, Bolton-based PJH designs, sources and distributes a range of kitchen units, appliances and bathroom suites to companies such as Barratt Homes, Persimmon and builders’ merchant Travis Perkins.
Employing 700, PJH is also an exclusive supplier of bathrooms to B&Q. The business has five trading divisions – Hopkinsons, Fourways, The Kitchen Group, Onsite, In-Store Logistics and Wellness Whirlpool – and over 550,000 sq ft of warehouse space across its eight UK trading centres.
PJH has seen turnover rise from £100 million in 2000 to more than £150 million last year. The company hopes to grow annual sales to around £200 million in the next three years.
Paul Johnson, director in charge of LDC’s Manchester office, said: “This is our third deal in four weeks in what has been quite a quiet time in market terms.”
Clearwater partner Mike Reeves and director Nick Holder advised LDC.
Mike Reeves commented: “We’re delighted to have advised LDC on the PJH deal. This deal further demonstrates Clearwater’s strength in our private equity offering and the innovative ways we work with PE portfolios.”
Andrew Yates, chief executive of PJH, said: “PJH’s established reputation in the market has helped us form strong partnerships with leading names like B&Q and exclusive supply agreements with a number of respected international brands.
“Consumer spending in the DIY market, and in particular bathroom suites and kitchen units, is set to continue increasing in the long term and PJH is perfectly positioned to capitalise on this growth.
The backing of LDC is welcomed, as we continue to build on the business’ solid foundations.”