Smallbone Plc, a supplier of kitchens and flooring to the luxury end of the market, has bought Christopher Peacock Cabinetry, a US premium kitchen retailer, for up to $15 million (£8.3 million) in a cash-and-shares deal.
Smallbone Plc, a supplier of kitchens and flooring to the luxury end of the market, has bought Christopher Peacock Cabinetry, a US premium kitchen retailer, for up to $15 million (£8.3 million) in a cash-and-shares deal.
Smallbone, which comprises top-end kitchen makers Smallbone of Devices and Mark Wilkinson, and flooring specialist Paris Ceramics, will make an initial cash payment of $8 million in addition to $4.5 million in equity. A follow-up payment of £2.5 million and 824,502 shares is due depending on the company’s performance in 2008 and 2009.
Christopher Peacock is one in a series of deals that reflects the group’s expansionist ambitions as it moves to strengthen its US business and tap into the US kitchen furniture market, which is estimated to be 12 times the size of the UK market.
Christopher Peacock, founder and former Smallbone sales designer, said: “We see great potential to redevelop cross-selling opportunities and believe that Smallbone’s highly developed and efficient workshop operations will directly aid ours to continue to improve gross margins.”
Peacock is a US-based private company specialising in the design, manufacture and installation of bespoke kitchen furniture.
The company recorded revenues of $14.6 million and pre-tax profits of $835,000 to December 2007. It has two shops in Greenwich, in Connecticut, and Chicago and two dealerships in Boston and Los Angeles. A new showroom is set to open in San Francisco this month.
