Howden Joinery Group (LSE:HWDN) has agreed to acquire the parent company of Ultima Furniture Systems, trading as DIY Kitchens, for an enterprise value of £390m.
DIY Kitchens is an online, vertically integrated, made-to-order kitchen business that generated revenue of £136m and EBIT of £37m in 2025 and gives Howdens direct access to non-trade consumers.
"The acquisition of DIY Kitchens, which will be operated on a standalone basis, adds a complementary very profitable business to the Group, providing access to non-trade end customers through its direct online channel with self-service planning, design and ordering tools," said Andrew Livingston, CEO.
Consideration comprises £292.5m of cash, funded from Howdens' existing resources and a new £240m bank facility, plus £97.5m of Howdens shares to the sellers (12.7m shares based on a 5‑day VWAP of 766p), and the transaction includes freehold property assets valued at around £55m.
Howdens says the enterprise value represents approximately 8.5x LTM EBITDA to 31 March and expects the deal to be immediately accretive to revenue, EBIT margin and EPS while delivering strong cash generation.
DIY Kitchens will remain an online-only, standalone business focused on non-trade customers while Howdens continues its trade-only depot model, and initial cost-saving opportunities are expected to focus on raw materials, sourcing and machinery.
Completion is subject to customary regulatory approvals, Howdens expects to remain in a net cash position post-transaction and the previously announced £100m 2026 share buyback and the Group's dividend policy are unchanged.
Howdens will announce its Half Year results on 23 July.
