Croydex, based in Andover, Hampshire, is an innovative designer, manufacturer and distributor of bathroom accessories and furnishings. Founded in 1919 and acquired by the exiting shareholders in 2006, the business turns over £20 million, making £2.7 million EBITDA and employing c.80 people.
Selling through retail channels such as national DIY, grocery and high street stores, and trade channels such as national builders' merchants, Croydex has grown strongly in recent years. The management team, headed by Managing Director Nick McGrellis, supported by strategic input from the exiting shareholders, have driven Croydex to outperform its market sectors through the downturn and have built a strong platform for further growth.
The shareholders felt that with the business strongly positioned, it was the right time for them to hand Croydex on to new owners.
Having worked with us over a number of years, the shareholders approached our corporate finance team to help them prepare the business for sale by focusing on the key drivers of a successful exit in their market.
In late 2014, we worked with the management team and the exiting shareholders to identify an international short list of potential buyers for the business and tailor a sale process that best suited the shareholders and company.
We ran a fast and effective sale process to minimise disruption to the business and allow the management team to continue delivering on their ambitious growth plans, as well as realise a fair return on the shareholders' investment.
A strongly structured two stage auction process minimised disruption to the business and creating a sense of competitive tension in the bidding rounds, increasing value at each stage. An international buyer field from 10 countries was approached in early March and the deal completed in three months, less than one month from the start of the exclusivity.
Norcros plc, who own a range of other brands in the space, emerged as the favoured home for Croydex, which will retain its brand and management team going forwards.
Grant Thornton's team quickly understood our goals and tailored a process to deliver on our priorities of minimising disruption and delivering the best home for the business, following a period of sale preparation. Their international reach, deal execution expertise and extensive experience shone through in the deal and we are absolutely delighted with the result.
Steve Brown Chairman, Croydex Group Limited
