Howden Joinery to buy DIY Kitchens for £390m

(Sharecast News) - Howden Joinery said on Wednesday that it has agreed to buy the parent company of Ultima Furniture Systems Limited, trading as DIY Kitchens, for £390m.

The price comprises £292.5m in cash and £97.5m in Howdens shares.

DIY Kitchens is "a high quality vertically integrated online kitchen business" through which Howdens will be able to access, directly, non-trade consumers, it said.

In 2025, the business generated revenue of £136m and earnings before interest and tax of £37m. It has achieved revenue growth of more than 17% per annum over the past five years, Howdens noted.

The company said that while DIY Kitchens will operate as a standalone business with its own infrastructure, it does see cost saving opportunities over time. These will be focused at least initially on areas where there is a common approach within raw materials, sourcing and machinery.

Howdens said the deal is expected to be immediately accretive to revenue, EBIT margin and earnings per share, with strong cash generation and returns above the cost of capital.

Chief executive Andrew Livingston said: "Howdens' highly successful trade-only model is built around supporting solely trade customers with outstanding in-stock availability, expert local depot teams, and an end-to-end service from design through to delivery. 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.

"DIY Kitchens shares many of the characteristics that underpin Howdens' success including well-invested manufacturing, strong vertical integration, scalable capabilities and a deep, well-embedded entrepreneurial culture."

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