The significant transition of Johnson Tiles UK, announced last month, has been finalised, marking a pivotal shift in the company’s structure.
- Johnson Tiles, a historical UK manufacturer since 1901, has changed ownership and will cease domestic production.
- The management team, including Stephen Dixon, Rich Kelsall, and Jason Bridges, now own the company through a newly established entity.
- A financial transaction of £1 million, along with a further earn-out contingent on future equity, has facilitated this acquisition.
- Moving forward, Johnson Tiles will pivot to a distribution model, importing rather than manufacturing tiles.
The management buyout of Johnson Tiles UK, a storied manufacturer established in 1901, has reached completion as of 19th May 2024. This deal, initiated by the company’s management including managing director Stephen Dixon, commercial director Rich Kelsall, and procurement director Jason Bridges, was initially announced in April. The acquisition sees the team paying £1 million, complemented by a modest earn-out, contingent on future equity value, due in April 2028.
This transition marks the end of an era for Johnson Tiles as it plans to halt production at its Stoke-on-Trent facility, a decision heavily laden with mixed emotions. Echoing the sentiments of managing director Stephen Dixon, the cessation is attributed to the unsustainable costs of manufacturing in the UK despite continuous investments. This strategic pivot will transform Johnson Tiles into a distribution entity, shifting focus to importing tiles from overseas, thus preserving its position as a leading UK tile designer and supplier. This change unfortunately results in the layoff of 105 production staff.
Norcros plc, the previous owner, has completed the sale, allowing it to refocus on accelerating its broader growth strategy. Thomas Willcocks, Norcros’ chief executive, extended his gratitude towards Johnson Tiles for its longstanding partnership, while expressing optimism for the management team as they embark on this new chapter. The new ownership structure assures that Johnson Tiles remains a significant employer within the Staffordshire area, leveraging its robust design and sourcing capabilities to navigate future challenges.
The completion of this management buyout sets a new strategic direction for Johnson Tiles, albeit with significant changes to its traditional operations.
