It has been reported in recent days that Epwin Glass has been acquired by Panoramic Group for an undisclosed sum. This is the first major acquisition of 2019, and although we face a rocky few months, I would not rule out further mergers and deals in the coming months. The UK fenestration sector is still a vibrant and competitive one, and there will be plenty of opportunities for companies to grow their groups and portfolios.
The Panoramic Group is a big business in itself. But you’ll probably know them best for their swing and slide patio door system, as supremely well demonstrated by Kevin Harvey in this video:
According to an article on Insider Media:
The company has bought sealed-unit double glazing business of Epwin Glass, part of Epwin Group’s Specialist Building Products business.
The plant produces more than 600,000 sealed units per year for a range of customers, including the new build and refurbishment sectors.
Alan Rees, chairman of the Panoramic group, said: “I am delighted to be adding the sealed unit plant to our group. This will create synergistic opportunities and support our planned growth across all our product range.”
This is a very big addition to the Panoramic business, and gives them instant access to a much wider part of the market. For Epwin, they unload one of their many assets, cashing in, although the figures involved in the sale are unknown at this time. They are likely to be wanting to focus on their core businesses and products as the industry dynamic continues to change.
More 2019 acquisitions?
Our industry remains a creative, dynamic and investible one, no matter what is going on around us. However, I think that the longer Brexit uncertainty continues, the more likely it is that foreign M&A will hit the pause button until companies from other countries know what the true lay of the land is. That won’t be until after March.
That being said, I think there is still plenty of scope for domestic mergers and acquisitions this year. The industry is still very bloated with companies in certain sectors, and is due for further consolidation as the industry in general seeks to become more efficient and productive. This presents an opportunity to those with the money to be able to expand groups they have already got and gain access to parts of the market they don’t have access to. Or, for those who are more adventurous, could start a journey to create new companies and groups.
If these are going to happen, I think they will be more likely to happen in the second half of the year. With things as they are right now, there might be one or two companies with their finger hovering over the button, waiting to see what happens in March before making a decision one way or another.
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