AURELIUS Equity Opportunities : acquires Ceramic Tile Distributors, a leading supplier of high-quality tiles

AURELIUS acquires Ceramic Tile Distributors, a leading supplier of high-quality tiles

• AURELIUS acquires Ceramic Tile Distributors (CTD) from Saint-Gobain
• CTD generated revenues of approximately EUR 120 million in 2021
• Strong potential to leverage CTD's UK market-leading position, whilst targeting both organic growth and add-on acquisitions

Luxembourg/London, February 18, 2022 - AURELIUS is pleased to announce the acquisition of Ceramic Tile Distributors ("CTD") in a carve-out transaction from parent company, Saint-Gobain (ISIN: FR0000125007). The transaction will be completed by AURELIUS' co-investment structure with AURELIUS European Opportunities Fund IV controlling a 70% stake and AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8) controlling 30%. The transaction is expected to close during Q1 2022.

CTD is a UK-based specialist supplier of high-quality ceramic tiles operating across 89 branches and 4 trading distribution hubs. The company predominantly sells tiles, tile adhesives, grout as well as associated tools and consumables for the preparation, laying, cutting and drilling of tiles. CTD's leading B2B market position is supported by strong brand awareness of its Gemini product line and strong trading performance. In 2021, CTD generated revenues of approximately EUR 120 million.

The UK market for tiles and fixing products is estimated to be worth just under EUR 1.2 billion and is expected to grow at a compound annual growth rate of 4% from 2021 to 2024. Primary factors for this growth are driven by home improvements, specifically pertaining to an increasing use of tiles in the home, number of bathrooms per home and growing demand for outdoor tiling.

AURELIUS will proactively work with CTD's highly experienced management team to leverage its leading B2B market position by expanding its e-commerce offering and to continue the company's operational development. Additionally, AURELIUS sees opportunities for new trade counter openings and new branch openings in key locations across the UK to further stimulate revenue and profit growth.

AURELIUS Partner, Tristan Nagler, commented:

"We are delighted to have kickstarted 2022 with the substantial acquisition of a leading business within a new fast-growing sector for the Group. Throughout its 54-year existence, CTD has developed become one of the largest suppliers of tiles in the UK with a sizeable share of the domestic market. As CTD embarks on its new journey under AURELIUS ownership, we look forward to working with the existing management team to accelerate its earnings growth, leveraging its strong market position and favourable market opportunities."

AURELIUS was advised on the transaction by Deloitte (M&A), Eversheds (Legal) and Interpath (Tax).