LONDON (ShareCast) - Norcros has bought Hampshire-based private firm Croydex for £21.9m, the company said in an announcement.
Shares in the bathroom supplier were up 5.32% following the announcement, at 19.09p at 09:08 on Thursday.

The deal, funded by debt through existing facilities included £20.8m settled in cash and £1.1m consideration deferred for three years.

In a statement, Norcros' board said it expected the transaction to be earnings enhancing immediately.

Croydex managing director will stay on to lead the business, and has a long term incentive scheme in place.

Numis said the deal was 'attractive' and reiterated its 'buy' recommendation and target price of 30p.

Analysts said the acquisition would enhance 2016 earnings by 14%, and 2017 earnings by 14%.

"There is scope for additional bolt-on acquisitions once Croydex has been integrated and management has reiterated that the pipeline remains strong," Numis said in a note.

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