Nobia has agreed to buy Dewsbury manufacturer Rixonway Kitchens from its investment firm owner August Equity.

The Swedish conglomerate — which also owns the Magnet kitchens retail chain in the UK — will pay £31m up front with a further £3m dependent on performance, and management remaining in place until March 2016.

Yorkshire based Rixonway Kitchens has sales in the order of £40m with an EBIT margin of 10 per cent. It supplies and installs kitchens for construction companies in the social housing sector.

“The acquisition is part of our growth strategy to expand to markets and segments that complement Nobia’s existing businesses, said Morten Falkenberg, President and CEO of Nobia.  

“We double our market share in the UK project market, which provides new opportunities for value creation for Nobia’s shareholders.”