Howden Joinery Group (LSE:HWDN) shares climbed 3% to 778p after it agreed to buy online kitchen retailer DIY Kitchens in a £390 million deal that gives it direct access to consumers for the first time.
The acquisition of the parent company of DIY Kitchens, formally known as Ultima Furniture Systems, will be funded with £292.5 million of cash and £97.5 million in new shares.
The deal is expected to be immediately accretive to revenue, margins and earnings per share.
DIY Kitchens generated £37 million of operating profit on £136 million of revenue in 2025, having grown sales at more than 17% annually over the past five years.
FTSE 100-listed Howdens, which supplies its kitchens via builders and tradespeople through its depot network, said DIY would continue to operate independently as an online-only business focused on non-trade customers.
The transaction also includes freehold property assets valued at about £55 million.
Howdens chief executive Andrew Livingston said the acquisition added "a complementary very profitable business" while preserving the group's trade model for its core brand.
He also reiterated that the £100 million share buyback programme and dividend policy were unchanged, adding that trading this year remains in line with expectations.
