Shares in Epwin Group PLC (LSE:EPW) soared 31% after its board agreed to a recommended £167.3 million cash takeover by the UK arm of German construction firm Laumann Group.
The deal, priced at 120 pence per share, represents a significant premium to recent trading levels and values the building products specialist at a multiple of 6.1 times its 2024 adjusted earnings.
The deal is backed unanimously by Epwin’s directors. Laumann, a European group aiming to broaden its presence in the UK, highlighted Epwin’s strong brands and limited overlap with its current business, viewing the move as a strategic expansion into an attractive and growing market.
Epwin, which manufactures energy-efficient, low-maintenance building products for the repair, maintenance and improvement sector, new build and social housing markets, said it will benefit from Laumann’s scale and technical infrastructure.
It also noted the offer provides full liquidity for shareholders at the highest price seen in over eight years, against a challenging backdrop for small-cap shares.
The stock rose 28p to 119p.