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Howdens has agreed to acquire the parent company of Ultima Furniture Systems, which trades as DIY Kitchens, for an enterprise value of £390m.
The transaction will comprise £292.5m in cash and £97.5m in new Howdens shares.
The acquisition allows the trade-only supplier to directly target retail consumers who prefer to self-manage their home improvements.
The target business operates an online-only model using automated design tools, supported by two destination showrooms.
The e-commerce business will continue to be operated separately from the main trade division after the deal completes.
The purchase is subject to standard regulatory approvals, and Howdens will fund the cash component using existing resources and a new £240m bank facility.
The target business generated revenue of £136m and an operating profit of £37m during 2025, representing a 27% profit margin.
The company has achieved an annual revenue growth rate of more than 17% over the past five years.
Howdens confirmed that its current trading remains in line with expectations ahead of its half-year results announcement on 23 July 2026.
The firm stated that its existing £100m share buyback programme for the year will not be affected by the transaction.
Andrew Livingston, chief executive, said: “Howdens’ highly successful trade-only model is built around supporting solely trade customers with outstanding in-stock availability, expert local depot teams, and an end-to-end service from design through to delivery.
“The acquisition of DIY Kitchens, which will be operated on a standalone basis, adds a complementary, very profitable, business to the Group, providing access to non-trade end customers through its direct online channel with self-service planning, design and ordering tools.”
He added: “We are excited to welcome the DIY Kitchens team to Howdens. We have great respect for the innovative business model they have built, and we look forward to supporting the business’s continued growth and investing behind its next phase of development.”
