Aurelius buys CTD in carve-out from Saint Gobain

Harriet Matthews
18 February 2022

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Aurelius has acquired Ceramic Tile Distributors (CTD) in a carve-out from parent company Saint Gobain.

Aurelius European Opportunities Fund IV will hold a 70% stake, with Aurelius' listed Aurelius Equity Opportunities holding 30%, according to a statement.

Aurelius held a final close for Aurelius European Opportunities Fund IV in April 2021 on its EUR 360m target, marking its first ever institutional private equity fund, as reported. The fund deploys equity tickets of EUR 15m-EUR 50m, with an average investment size of EUR 25m and an additional EUR 150m co-investment capacity from its listed vehicle.

The fund aims to make 10-20 investments and CTD will be the fund's fifth co-investment alongside Aurelius' listed business.

The GP intends to work with CTD's existing management team to develop the company's B2B market position, expanding its e-commerce offering and developing the company's operations.

Aurelius said in a statement that growth in the UK tiles and fixing products market is currently driven by the increase in home improvements involving tiles, the increasing number of bathrooms in each home, and the growing demand for outdoor tiles. The GP also intends to take advantage of opportunities for new trade counter and branch openings in the UK.

The deal is expected to close in Q1 2022.

In addition to the sale of CTD, Saint Gobain simultaneously announced the sale of Ideal bathrooms to plumbing merchant business Wolseley UK, a portfolio company of Clayton Dubilier & Rice (CD&R). CD&R acquired the business from parent company Ferguson in January 2021 for GBP 308m, corresponding to an entry multiple of around 6x its EBITDA, according to Unquote Data.

Company
Ceramic Tile Distributors (CTD) produces ceramic siles, tile adhesives and grout, as well as related tools and consumables for tile preparation, laying, cutting and drilling. It operates via 89 branches and four distribution hubs. It posted 2021 revenues of EUR 115m and employs 580 staff. CTD was founded in 1968 and is headquartered in Loughborough.

People
Aurelius – Tristan Nagler (partner).
Saint Gobain – Benoit Bazin (CEO).

Advisers
Equity – Deloitte (M&A); Eversheds Sutherland (legal); Interpath (tax).
Vendor – Clearwater International (corporate finance).