Alcuin sells Domus to Headlam for up to £35.4m

The deal includes an initial cash consideration of £29.4m, with a deferred cash and shares payment of £3.3m due over two payments in December 2019 and December 2020. The remaining £2.7m is based on Domus achieving EBITDA targets over a three-year period.

The transaction is an exit for Alcuin's 2009-vintage third fund, which held a final close on its £100m target in November 2011.

The business increased its operating profit from £376,000 to £3.4m in the four years from 2012-2016, according to publicly available documents.

Following the deal, the company will continue to operate independently under the Domus brand and be led by CEO Jon Newey and the current management team.

Previous funding
The flooring and tile business (then known as Domus Tiles) first received private equity backing in March 2001, when Graphite Capital supported its management buyout. Following the acquisition, the business was rebranded as TileCo.

Alcuin then acquired TileCo from Graphite in November 2012, before rebranding it as Domus Group. Asset-based lender Centric Commercial Finance provided debt to support the transaction. The value of the deal remained undisclosed, though at the time the GP made investments of £2-10m.

Company
Founded in 1963 and headquartered in West Molesey, Surrey, Domus distributes hard flooring and tiles. Its products include wall and floor tiles made from porcelain, ceramics, vinyl and natural stone; mosaics made from glass, marble, metal, ceramics and porcelain; and engineered timber and laminate flooring. Its products are primarily sourced from manufacturers in Italy, with which it has long-term supply arrangements.

Domus predominantly works alongside architects and interior designers on large-scale projects such as commercial offices, residential development, leisure buildings and retail projects. Recent contracts include Battersea Power Station, The Shard, Wembley Stadium, Terminal 2 and Terminal 5 at London Heathrow Airport, and the new US embassy in London.

The business generated a turnover of £29.6m in 2016, according to a statement, with EBITDA of £4.4m.

People
Domus Group – Jon Newey (CEO).
Headlam Group – Steve Wilson (CEO).

Advisers
Acquirer – Investec, Garry Levin, David Flin, Alex Wright (corporate finance).

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• Topics
• Exits
• UK / Ireland
• Industrials
• United Kingdom
• Trade sale
• Graphite Capital