Nobia-Gower
Acquisition Triggers OFT Merger Investigation
The recent acquisition of Gower, the flat pack kitchen specialist, by
the Swedish Nobia Group has been listed by the Office of Fair Trading
as an invitation to comment under the Enterprise Act. This happens
automatically when the turnover of the acquired company exceeds £70m
and will enable interested parties to submit comments either py phone
or letter, to the case officer at the OFT.
As well as inviting comments, the OFT will carry out its own investigation,
principally by contacting the top five customers of both companies (ie
Gower and Nobia) and their top five competitors, with a view to ascertaining
whether competiton has been reduced as a result of the acquisition. Deadline
for comments is the 12th, with the 40 day admin deadline expiring on March
1st, by which time the OFT should have announced the results of its deliberations.
Parties: Completed acquisition by Nobia Holdings UK Ltd of
Gower Group Ltd
Affected sector: Kitchen interiors
Case officer: Ainslee Wilton 020 7211 8582
Deadline for comments: 12/01/2004
The acquisition itself looks pretty straightforward, providing Nobia with
the second biggest UK player in a bouyant market in which the Group wants
to expand; namely the flat pack kitchen market which is principally distributed
through the DIY multiples. Gower offers a good fit for Nobia, which already
owns Poggenpohl, Magnet, HTH, CP Hart and Pronorm.
As a result of the acquisition, Nobia's UK market share grows from 8 per
cent to 15 per cent
Nobia has acquired the UK kitchen company Gower Group Ltd for a purchase
price on a debt-free basis of SEK 890m (£69m). Gower’s sales
total approximately SEK 1.0 billion and its market share in the UK is
approximately 7 per cent.
Gower is the UK’s leading supplier of flat-pack kitchens to multiple
retailer chains and the second largest manufacturer of flat-pack kitchens
overall. Gower supplies DIY and other multiple retailers, builders’
merchants and independent kitchen studios. The continental European market
accounts for 5 per cent of sales. Gower also manufactures flat-pack bathroom
and bedroom furniture, which account for approximately 12 per cent of
sales. Gower employs 475 people at its facilities in West Yorkshire. The
company’s main production site and headquarters is in Halifax.
Following the acquisition, the flat-pack share of Nobia group sales will
increase from 10 per cent to 19 per cent. In Nobia, Business Unit Optifit
is a focused flat-pack business. Other Nobia businesses that supply flat
pack kitchens are HTH, Magnet and Marbodal, in addition to their ranges
of rigid kitchens.
The main strategic attraction of the acquisition is that Gower and Nobia
together will be able to strengthen their offer to multiple retailers.
The combined scale of Gower with Nobia’s other businesses will lead
to wider product content, sharper new product development, a broader service
offering, more effective sourcing and a Europe wide supply capability.
Acquiring Gower also enables Nobia to capitalise on the strong growth
being achieved in the UK multiple retailer segment in recent years, led
by new store openings and greater commitment to the kitchen category.
The UK kitchen market has seen an annual growth of 2-3 per cent in the
past 5 years.
Rigid kitchens account for approximately 60 per cent of the market value
and flat-packs account for 40 per cent.
Nobia’s current UK operation consists of Magnet and CP Hart, which
primarily offers fitted kitchens, bedroom and bathrooms to the upper-middle
segment of the market through its network of retail stores. Nobia’s
market share in the UK kitchen market is currently around 8 percent. With
Gower, Nobia’s UK market share will increase to 15 per cent. The
UK operation’s share of Nobia group sales will increase from 42 per
cent to 47 per cent.
Gower’s management will join Nobia’s management team. Gower
will operate as a stand-alone Business Unit in the UK. Martin Elgood will
continue as Gower’s Managing Director.
Richard Reynolds, who is to remain as Gower’s Chairman, will assume
a newly instituted Groupposition of Vice President Operations, with responsibility
for developing Nobia’s continental European business with multiple
retailers. He will also join the Group Management. Kevin Ohle, Reynolds’
Partner, remains director of Gower and will also be appointed Vice President
Projects with responsibility for exploiting synergies across the Group.
'The acquisition strengthens Nobia’s position in the UK and opens
up new possibilities. We gain a strong position in the UK multiple retailer
market; that is particularly interesting as it represents a large and
growing part of the market. Gower has been exceptionally skilled at building
strong relationships with DIY chains and other multiple retailers and
Nobia believes the joint operations will be able to support the customer
base even better,' says Nobia’s CEO Fredrik Cappelen.
'We are delighted to become part of the Nobia family, Europe’s largest
kitchen group. The flat-pack market across Europe accounts for 25 per
cent of the total kitchen market. Nobia has several excellent businesses
in different countries and we are very excited by the potential this gives
us to strengthen the position of our existing customers and to grow Nobia’s
share in the multiple retail sector,' says Richard Reynolds, Gower’s
Chairman.
Topps
Tiles AGM Statement tries to Dampen City Enthusiasm
At
this week's Annual General Meeting of Topps Tiles Plc, the founders and
co-chairmen Barry Bester and Stuart Williams told shareholders:
'We are delighted to report that trading in the first 14 weeks of our
new financial year has started extremely well with like-for-like sales
growth in excess of 16% and we are confident in our ability to reach our
targets for the current year.
'As part of the planned net 24 new store roll out for this financial year
we have already opened an additional five stores.
'Topps has made a good start to the new financial year, however sustaining
the current level of like-for-like sales growth for the rest of the financial
year could prove to be challenging given that the corresponding period
last year showed strong comparative growth. Nevertheless, we remain positive
and confident of the future prospects for our business as consumer recognition
of the Topps Tiles brand continues to extend against the backdrop of a
growing tile market.'
According to the Financial Times, the AGM statement was designed in part
to 'curb investors' expectations', but went on to quote Barry Bester that
Topps is 'becoming recognised on the high street as a brand name'.
'We had a very good year last year, so we are throwing in a bit of caution',
he continued.
'What is important for us is good employment levels - if people are working,
then people are spending'. he added.
Government
Moves to Stop Bath-Time Scalding Injuries
Hot
bath water is responsible for the highest number of fatal and severe scald
injuries in the home. Every year around 20 people die as a result of scalds
caused by hot bath water and a further 570 suffer serious scald injuries.
Each year more than 430 very young children are seriously injured in scalding
accidents in hot baths.
Now Government Minister Phil Hope aims to make bath-time safer by ordering
a review of building regulations which could see all newly built or converted
private properties fitted with a safety device to control the temperature
of the water coming out of showers and hot water taps to baths and basins.
The Minister said:
'The bath has the highest number of fatal or serious scalding incidents.
Safe water temperatures are essential since most accidents occur with
the young, elderly or infirm either getting or falling into baths that
are initially too hot, or in topping up with hot water.
'Thanks to government, industry and the voluntary sector working together,
a new generation of thermostatic mixing valve (TMV2), suitable for domestic
use, has been developed. Subject to the views of BRAC (Building Regulations
Advisory Committee) and a full public consultation, I now believe it is
practical to consider bringing the issue within the scope of building
control.'
The initiative to reduce bath water scalds among young children was originally
started by national children’s charity Child Accident Prevention
Trust. Their factsheet about thermostatic mixing valves is available here
(PDF file)
The Thermostatic Mixing Valve Manufacturers Association (TMVA) represents
many of the mixing valves companies in the UK:
'The problem with bath water scalding begins largely with the need to
store heated water at temperatures typically above 60 degrees Centrigade
to avoid bacteriological contamination – particularly legionella,
a naturally occurring organism that has the potential to kill.
'The new valves provide a solution by mixing hot water (stored at a temperature
high enough to kill legionella) with cold water to ensure constant and
safe outlet temperatures to prevent scalding,' explained director Dr Howard
Porter.
Tel: 020 7793 3008
Email: mailto:hporter@beama.org.uk
Web: http://www.safehotwater.com
Deva
Invests in NBS Plus Initiative
To
support its expanding base of specifiers and architects, Deva has invested
into the National Building Specification (NBS) Plus Initiative –
the UK construction industry specification standard, approved by RIBA
– to list Deva’s comprehensive brassware portfolio.
Recognising that the key to successful brassware specification is directly
related to the availability of improved product information, access to
greater product choice, innovation, quality, technology and design, Deva
lists over 1000 products on the Specification Writer and Manager within
14 relevant clauses.
‘As one of the few RIBA-approved brassware suppliers listed on the
Writer, the interactive database ensures safe and reliable specification’,
explained Deva’s Marketing Manager, Catherine Lund. ‘A vast
majority of architects use the NBS format, a recognised specification
which provides up-to-date, concise and properly structured product information
– placed in front of specifiers at the point of specification.’
By starting the specification process with the NBS, means all parties
- such as quantity surveyors, structural engineers and sub-contractors
- gain direct access to all product information, required standard of
work, performance conditions and regulatory guidance associated with the
project. Updated four times a year, the library of information provides
the specifier with confidence and peace of mind, recommending they contact
the NBS manufacturer as early in the design process as possible.
NBS Plus was launched in 1998 and currently has 305 manufacturers listed.
Its origins date back to 1964 when a National Building Standard was proposed
by Government, leading to the first NBS being published in 1973.
Tel: 0870 848 8400
Email: mailto:sales@devatap.com
Web: http://www.devatap.com
Hopkinsons
Team up with Orama in new Ardesco distribution
Kitchen
and bathroom distributor, Hopkinsons Fourways announces its partnership
with manufacturer of worksurfaces, Orama, to become the first distributor
to take on the new Ardesco range.
As the first UK distributor of the new worksurfaces range, Hopkinsons
Fourways’ large stockholding facilities, nationwide distribution
network and extensive customer support, led Orama to choose the company
as its preferred supplier to the independent trade.
Orama’s new Ardesco collection offers the consumer a range of design
solutions, presenting a combination of European style with the latest
technology. Featuring 24 laminates, 6 composite solid surfaces and a solid
timber option, a brand new mirror flat finish, that eliminates ‘telegraphing’
(ripples in the surface), has also been introduced on all gloss and silk
laminates. Orama has invested heavily in a new manufacturing technique
to achieve this new level of surface quality.
Said Sally Parkinson, marketing manager for Hopkinsons Fourways: ‘Both
Orama and ourselves share common goals of offering customers the latest
products in terms of style and technology, as well as leading the way
in industry innovation.
Our strategy remains to focus on contributing to customer success, so
we continuously aim to supply outlets with latest and highest quality
products at the most competitive prices. The Ardesco range meets all such
pre-requisites and perfectly complements our comprehensive kitchen portfolio.’
Additionally, the Ardesco range is available in a popular 3m length, making
it easier to handle and install. Durable and hard wearing, the worktop
range also includes a generous 50mm depth option, 7 splashback choices,
a sharp edge radius and new edging options.
For further information on the new Ardesco range available from Hopkinsons
Fourways, call the company on 01204 707070 or visit http://www.hopkinsonsfourways.co.uk.
New
Sales & Marketing Director to Head Team at Deva
North
west-based brassware specialist, The Deva Tap Company, has appointed a
new sales & marketing director, Neil Overton, to take responsibility
for all marketing communications and sales activities of the Deva brand.
With a wealth of experience in his field, Neil brings to Deva a vast portfolio
of skills which he has built up in over 30 years of engineering, sales
and business development roles within some of the leading names in the
plumbing, heating and building industries. Previously holding the post
as commercial director at Cestrum Building Products, Neil has moved his
career swiftly, spending time at Caradon Plumbing as business development
director, at Danfoss Randall as sales director and at Caradon Stelrad
as divisional manager.
Deva has grown rapidly over the last few years, through both acquisition
and internal growth, and Neil forms part of a new management team who
are well under way consolidating and streamlining the Deva business.
Commenting on his appointment at Deva, Neil explained: ‘A new direction
for Deva means I will be re-focussing the sales team’s activities,
aiming for growth within the specification, house building and contract
markets. The team now in place is well equipped to move forward and deliver
a new marketing strategy, focussing on building the Deva brand through
clear messages to defined market segments.’
Also responsible for meeting sales and profit budgets, Neil will head
up the sales team, aiming to develop the people and the business in offering
customers a first class service.
‘I was attracted to join the company for many reasons. With all the
right building blocks now in place to allow expansion – a quality
product portfolio, excellent customer care activity, flexible product
availability and a friendly, yet strong professional business ethos, I
feel both challenged and excited about the future.’
Deva supplies a range of all brassware styles, including showering, kitchen,
electronic, contract, specialist, accessory and waste products.
Tel: 0870 848 8400
Email: mailto:sales@devatap.com
Web: http://www.devatap.com
Exclusive
New Homes Development Installs John Sydney
John
Sydney, the contemporary bathroom fittings company, has teamed up with
Braemore Properties at its exclusive Park Rock development of apartments
at Castle Boulevard in Nottingham and supplied the Elite shower equipment
for both the ensuite and main bathrooms.
There are 38 design-led, loft apartments on this historic site, overlooking
the Nottingham Canal. Each apartment has a feeling of light and space,
achieved with eye-catching full height and corner glazing and is luxurious
within, featuring cool stone flooring, dramatic glazed atriums and sleek
bathrooms and kitchens.
The spacious bathrooms are subtly lit, feature stone flooring and wall
tiles and are each fitted with the Elite Thermostatic Dual Control Shower
Mixer with Fresh Multi Mode Fixed Shower Head from John Sydney, suitable
for both high and low water pressure systems. The shower has automatic
safety shut-off and dual control.
John Sydney provides a comprehensive ten year guarantee with its entire
bathroom fittings Collection. All products comply with WRAS guidelines
and are sold for contract and domestic use via selective bathroom dealers
and specifiers.
Tel: 01827 304000
Web: http://www.johnsydney.com
Corian®
and Zodiaq® Make a Move
Seven
years of substantial growth for Corian®, the original solid surface
invented by DuPont, added to the introduction of the new quartz surface,
Zodiaq®, has resulted in the recent relocation of the UK DuPont Surfaces
business. Moving from their former home in Hemel Hempstead to purpose
built premises at Pitstone, near Tring, the Corian® and Zodiaq®
Marketing team can now take advantage of 8,000 square feet of office,
conference and workshop space.
The interiors and systems of the new building have been specially designed
to enable the 21-strong team to fulfil the needs of dealers, fabricators,
specifiers and consumers with optimum efficiency. And, of course, several
areas of the building benefit from the aesthetic and practical benefits
of both DuPont materials. Zodiaq® tops feature in the kitchen, while
Corian® has been used in the washrooms and to create stylish ‘hot
desking’ and modular, adaptable conference tabling.
The new building also features a workshop, fully equipped as a training
and seminar facility to demonstrate to fabricators, installers and the
design community the skills, techniques and possibilities when it comes
to creating installations in Corian® and Zodiaq®. The workshop
and its expert staff will also allow for further development and prototyping
for both conceptual and actual projects.
Paul McDowell, Managing Director of DuPont Corian® and Zodiaq®
in the UK is delighted with the move, ‘these new premises have been
designed with our specific requirements in mind and have given us the
breathing space and state-of-the-art facilities to allow us to operate
to our full potential. What’s more, if as indicated, our growth continues
so successfully, we have the option to expand to a further 4,000 square
feet if we need to!’
The new address for Corian® and Zodiaq® Marketing UK is:
10 Quarry Court, Pitstone Green Business Park, Pitstone Nr. Tring, Bucks
LU7 9GW
Tel: 01296 663 555. Fax: 01296 663 599. Email: mailto:sales@corian.co.uk
Laura
Ashley Launches new Range of Tiles with British Ceramic Tile
Laura
Ashley is to launch a new range of ceramic wall tiles, manufactured under
licence by British Ceramic Tile.
The range will be introduced to the trade at Expotile in January 2004.
A consumer press campaign and a bespoke in store display stand and brochures
will support the launch.
Laura Ashley's Home Furnishing collections have been the inspiration for
the tiles which will be retailed nationwide through Laura Ashley Mail
Order, the Laura Ashley website and selected tile stores. The field tiles
follow the current trend for soft neutral effects and feature a variety
of special finishes with the complementary strips enhancing and adding
value to the range.
Highgate
A modern take on the classic metro tile this is suitable for creating
a contemporary look whilst evoking a period feel. The simple clean strips
enhance what is an elegant tile.
Camborne
The colours of the strips in Camborne and the field tiles' sailcloth texture
are reminiscent of the small seaside town that gives this collection its
name. The fresh white and blues of the one combination can be used to
create a clean bright bathroom, whilst the softer neutral tones of the
other create a soft, calm feel.
Wiston
Building on a popular look of the moment this natural stone finish tile
has a satin glaze and glossy highlights meaning it can be paired with
the real marble mosaic strip and the brocade design of the Fossil strip
to create a luxurious look.
Gardiner
Gingham is a popular pattern in interiors this season and set to move
into tiles for 2004. Gardiner is suitable for a country kitchen look whether
used as an accent with the plain satin field tile or a combination of
the blue and white for the full effect. The hand painted pencils complete
the feminine feel.
Milford
The pretty pastels on a matte stone finish complement the current trends
in kitchen furniture and accessories. Teamed with the field tiles, mosaic
strips create a fabulous atmosphere in any style of kitchen.
Tel: 01626 831474
Fridge
Recycling Facilities Starting to Improve
There
are signs of improvement in the UK’s recycling facilities for cold
appliances. As the ‘fridge mountain’ subsides, some retailers
are now reintroducing their take-back schemes.
Since early 2002, some retailers have refused to take away old fridges
and freezers when they delivered new ones. The problem arose because new
regulations for disposing of cold appliances were introduced before the
UK had any facilities which could meet them. Local authorities were left
to deal with the resulting ‘fridge mountain’.
But, now that recycling facilities are available, some retailers –
Comet, Dixons and Iceland – have begun to offer this service again
for a £15 fee (though Iceland’s service is not available for
internet purchases). Argos, John Lewis and Miller Brothers say they are
planning to relaunch their services soon.
Also, remember that your local authority still has a responsibility to
take your old fridge or freezer away. Some offer free collection, others
charge up to £30. If you can take the appliance to your local tip
yourself, there’s no charge.
Williams
Refrigeration Invests £1 Million in State-of-the-Art Production
Technology
Williams
Refrigeration - part of Aga Foodservice Equipment - has announced its
continuing commitment to the development and growth of its manufacturing
capability, with an immediate £1 million program of investment in
state-of-the-art production technology at both its King’s Lynn and
Downham Market facilities.
Against a background of increasingly stringent market conditions, the
company says that the £1 million investment is set to propel Williams
Refrigeration ahead of competition by allowing it to continue to satisfy
customer expectations for product design, performance, quality and leadtime.
Said recently appointed Greg Sutherland, Manufacturing Director, Williams
Refrigeration: 'It is crucial that we can not only offer superior refrigeration
products to our customers, but that we can continue to do this quickly
and efficiently. The £1 million investment represents a boost to
Williams’ production capabilities, and one that will be reflected
in the improved time-to-market of our popular counter, cabinet and modular
refrigeration products.
'Williams Refrigeration has also recently been awarded ISO9001:2000, the
internationally recognised Quality Management System, for its King’s
Lynn, England, and Melbourne, Australia, manufacturing sites. The award
is testimony of Williams’ commitment to maintaining exceptional quality
standards, exceeding customer expectations through close working relationships,
providing accredited design solutions, and our continued marketing leading
position across the globe.'
Tim Smith, Managing Director, Williams Refrigeration, is delighted with
the result. He says: 'The award brings our customers the assurance that
we are committed to deliver exceptional refrigeration solutions to meet
the changing requirements in this highly competitive market. Equally important
is the recognition in this award that we can live-up to our promise of
exceptional customer service, and continued proactive product development
time and time again. Looking forward, ISO9001:2000 accreditation will
also serve as a platform for our continuing improvement in excellence
across all areas of the business.'
The King’s Lynn and Melbourne manufacturing facilities join sister
sites at Downham Market, England; Williams Ming Fai, China and Williams
Central, Doncaster, in being ISO9001:2000 accredited.
Free phone: + 00 44 0800 526 517