Pro Tiler — Acquisition by Topps Tiles plc
Specialist online tiling supplies business fully acquired by Topps Tiles plc in two stages, illustrating how established trade relationships, specialist distribution and scalable online sales channels can support a valuation slightly above the indicative SME range.
Acquirer
Topps Tiles plc
Year
2024
Total Acquisition Cost
£14.0m
Revenue
£28.8m (FY2024)
Adjusted EBITDA
£2.4m
Effective EBITDA Multiple
5.1×
Industry
Stone & Tile Business
Transaction
In May 2024, UK-listed tile retailer Topps Tiles completed its acquisition of Pro Tiler, a specialist online supplier of tiling products and accessories to professional tradespeople. Topps Tiles initially acquired a 60% stake in March 2022 for £5.3 million, followed by the remaining 40% in May 2024 for £8.7 million, bringing the total acquisition cost to £14.0 million. During its period of partial ownership, Pro Tiler generated £2.8 million in cumulative post-tax earnings, of which £1.7 million was attributable to Topps Tiles. After deducting these attributable earnings, Topps reported an effective acquisition cost of £12.3 million. Against Pro Tiler's rolling 12-month EBITDA of £2.4 million, this represented a buyer-reported effective acquisition multiple of 5.1× EBITDA. For comparison, the £14.0 million total acquisition cost represented approximately 5.8× rolling EBITDA before deducting historical earnings. Pro Tiler subsequently generated £28.8 million in FY2024 sales.
Why the Premium?
- Established specialist tiling supplies business
- Strong online sales and distribution capabilities
- Professional tiler and contractor customer base
- Complementary products alongside Topps Tiles' existing range
- Proven profitability and established market presence
- Opportunities for procurement and distribution efficiencies
SME Takeaway
The Pro Tiler acquisition provides a relevant UK transaction example within SME Multiples' $1m–$50m revenue benchmark. At a buyer-reported 5.1× effective EBITDA multiple, the transaction sits slightly above the indicative 2.5×–5× EBITDA range for stone and tile businesses. The acquisition illustrates how established trade relationships, specialist product distribution and scalable online sales channels can support stronger valuations. However, the 5.1× multiple reflects an adjusted acquisition cost that deducts earnings attributable to Topps Tiles during its period of partial ownership. It is not a conventional enterprise-value-to-EBITDA multiple calculated at a single transaction date. Pro Tiler is also primarily a tile trade supplies and distribution business rather than a stone fabrication or installation company. The 5.1× multiple is calculated using £12.3 million effective acquisition cost and £2.4 million rolling EBITDA, as presented by Topps Tiles. The unadjusted acquisition cost of £14.0 million represents approximately 5.8× rolling EBITDA. Neither figure should automatically be interpreted as a conventional transaction EV/EBITDA multiple.
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.