A SWEDISH company has bought one of the UK’s biggest manufacturers of rigid kitchens for social housing in a £34m deal. Rixonway Kitchens has been sold by private equity firm August Equity and its management team to Nobia, which is listed on the Stockholm Stock Exchange.
Nobia, which is behind the Magnet kitchen brand, said the deal to acquire Dewsbury-based Rixonway would strengthen its position in the UK market. Rixonway has manufactured kitchens in Yorkshire for 36 years.
Since a management buyout (MBO) in 2006, which was led by the chief executive Paul Rose, it has become one of the market leaders in supplying kitchens to contractors operating in the social housing sector.
The company employs 480 staff and its turnover is around £40m. Nobia manufactures and sells kitchens through a 20-strong brand portfolio and already has a significant presence in the UK market. Mr Rose and the management team will continue to run Rixonway following the completion of the deal.
Mr Rose said: “It’s business as usual. The acquisition of Rixonway by the Nobia group is a great strategic fit for both businesses. Being part of a larger group will open up many opportunities for the business and we look forward to working closely with Nobia to realise our future growth plans.”