1st Jun 2022 14:37
(Alliance News) - Brickability Group PLC on Wednesday said it has acquired Modular Clay Products Ltd for GBP4.8 million, which it expects will be "immediately earnings accretive".
The Bridgend, Wales-based construction materials distributor said Modular Clay Products is a supplier of UK and imported clay facing bricks.
The acquisition is being satisfied by an initial cash payment of around GBP3.3 million and a deferred payment of around GBP1.4 million in cash over the next three years. The acquisition will be funded by Brickability's existing resources.
Chief Executive Alan Simpson said: "The acquisition of Modular Clay Products will significantly increase our presence in the specification sector and bring the group new access to a range of European manufacturers further boosting our strong import capabilities."
Modular Clay Products reported revenue in 2021 of GBP10.5 million and normalised earnings before interest, tax, depreciation and amortisation of GBP1.3 million.
Brickability said that the acquisition is expected to be immediately earnings accretive post-completion.
Shares in Brickability were down 0.6% to 88.00 pence each in London on Wednesday afternoon.
By Sophie Rose; [email protected]
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