TTK Prestige acquires Horwood Homewares, UK.

TTK Prestige’s subsidiary, TTK British Holdings will acquire a UK based kitchenware company Horwood Homewares. The company acquired target company’s 100 per cent equity shares and business. Post-acquisition, Horwood Homewares will become wholly owned subsidiary.

TTK Prestige will have an advantage to get a branded player with a century-old existence. The name of brand involved will be shared on completion of the deal. According to the TTK group, Horwood is of the size of Pound 18 million (Rs 170 crore) with a double digit EBIDTA margins. The acquisition will give company to strengthen presence across UK and Europe. It has plans to leverage its domestic manufacturing capacity to cater these branded segments.

Horwood has experienced marketing, sales and distribution strength. The company does not have any manufacturing base but outsource all of its requirement from third party manufacturers.

The share price of TTK Prestige increased by 7.74 per cent on bourses in early trades and is trading at Rs 4640 on intraday basis.

Horwood is one of the largest table and cookware suppliers in UK. It is leading brand owner nad distributor of international brands supplying over 2000 table and cookware products across key European markets.

TTK Prestige caters to home makers in the country. The company operates through two segments viz. Kitchen Appliances and Property & Investment. It operates approximately 500 Prestige SmartKitchen stores all over India. TTK Prestige has 10 factories, 23 warehouses, multiple innovation centres and caters 50000 retailers across India. The company has presence through Original Equipment supplies to UK, Europe, USA, Middle East, Africa, South East Asia, Australia and New Zealand.

TTK Prestige’s EPS at trailing twelve month (TTM) was at Rs 88.44 per share as per the as of Q3FY16. The company’s share price is trading at PE multiple of 51.89x times. The book value of the company stood at Rs 553.04 per share and PB multiple of 8.30x times.