Howdens Joinery Group Plc (HWDN.L) has agreed to buy Ultima Furniture Systems, trading as DIY Kitchens, for an enterprise value of 390 million pounds, the British kitchen supplier announced on Wednesday.
Further, the company said year-to-date trading has continued to be in line with expectations and that it remains on track with its 2026 outlook.
On the LSE, shares of Howdens Joinery were gaining 2.98 percent, changing hands at 777.50 pence.
Howdens will report half-year results on July 23.
Regarding the planned acquisition, Howdens said it will pay 292.5 million pounds in cash, and issue 12.7 million new shares worth 97.5 million pounds to the seller. The cash portion will be funded from existing resources and a new 240 million pounds bank facility.
Howdens said the deal would immediately add to revenue, EBIT margin and earnings per share.
The 390 million pounds price represents 8.5 times DIY Kitchens' EBITDA for the 12 months to March 31, 2026.
Completion is subject to customary regulatory approvals.
DIY Kitchens is a vertically integrated kitchen business that sells its products exclusively online. DIY Kitchens has two destination showrooms for product display and a third is under construction in Scotland.
According to Howdens, the cash-and-shares deal gives it access to non-trade consumers through DIY Kitchens' online-only, direct-to-customer model. Howdens currently sells exclusively to trade professionals via its 893 UK depots.
Following the deal closure, DIY Kitchens will remain an online only business focused on non-trade customers, and will operate separately.
Howdens said the acquisition does not change its planned 100 million pounds share buyback for 2026.
Chief Executive Andrew Livingston said the deal adds a "complementary, very profitable" business and provides access to non-trade customers through a direct online channel.
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