Bridgend headquartered construction materials distributor Brickability Group has expanded with a £11.6m acquisition.
The Alternative Investment Market listed firm has acquired a 100% interest in family-run brick supplier ET Clay Products. Established over 25 years ago and headquartered in Essex, ET Clay Products is a specialist supplier of UK and imported clay facing bricks and high quality handmade and handcrafted clay roof tiles.
Operating out of three yards, the acquired businesses will bring new customers to Brickability, particularly in the merchants channel.
In its last financial year to the end of July this year, ET Clay Products generated unaudited revenues of £44.3m and adjusted Ebitda of £3m.
Brickability supplies over 550 million bricks annually and has over 55 locations across the UK with more than 600 employees. It also has customers across Europe.
Its latest acquisition is being satisfied by an initial cash payment of £8.1m and deferred consideration of £3.5m payable in cash over the next three years subject to performance targets
The consideration is being satisfied in cash and funded from the Brickability Group’s existing cash resources and is expected to be immediately earnings accretive post completion.
Alan Simpson, chief executive of Brickability Group, said:“The acquisition of ET Clay Products provides another important step in the growth of our import division by further expanding the supply base of the Group through new access to a range of overseas manufacturers.”
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