Shares in Epwin Group surged more than 30 per cent after the Solihull-based building products manufacturer agreed to a £167.3m takeover offer from German construction supplier Laumann Group.
The all-cash deal, priced at 120p per share, represents a 6.1x multiple of Epwin’s 2024 adjusted earnings and offers shareholders the highest valuation for the company’s shares in over eight years. The board of Epwin has unanimously recommended the offer.
Laumann, a German-headquartered international provider of construction-related solutions and IT services, said the acquisition would accelerate its growth plans in the UK and strengthen its presence in a key European market. The group reported revenues of €1.6bn and EBITDA of €199.1m in 2024.
Epwin manufactures energy-efficient, low-maintenance building products for the repair, maintenance and improvement (RMI) sector, as well as for social housing and new build markets. It employs more than 2,100 staff across 100 sites in the UK, producing over 60,000 tonnes of PVC, aluminium, GRP and composite materials each year.
In 2024, Epwin generated £324m in revenue and £26.2m in underlying operating profit. The company said the deal would provide “full liquidity” for shareholders and allow it to benefit from Laumann’s technical infrastructure and international scale.
Stephen Harrison, chairman of Epwin, said the acquisition was “a testament to the hard work of the management team and all of our people,” and highlighted the company’s strong balance sheet and well-managed operations. He added that the deal would deliver value to shareholders while ensuring continuity in business strategy under a “stable and supportive new owner.”
Laumann’s directors Andreas Hartleif and Pascal Heitmar described Epwin as a “complementary business” and said they were “excited about the potential” of the enlarged group in the UK. They praised Epwin’s management and product portfolio, adding: “We have long admired Epwin and look forward to welcoming them into the Laumann group’s family.”
The deal comes against a challenging backdrop for UK small-cap stocks, with several firms struggling to attract investor interest. Epwin’s share price jumped 28p to 119p on the news, nearing the offer price.
Subject to regulatory approval and customary conditions, the acquisition is expected to complete later this year.
Why this matters: This a significant move for a European organisation to expand its reach into the UK. The UK market is witnessing turbulent times but this takeover signifies a long term belief in the UK. It does take another UK window systems supplier out of British ownership and it will be interesting to see how this shapes the business and how customers will react to any changes. No doubt investment will be made, and this will be essential if Epwin is to remain as a leading supplier in a very competitive window system market.
