Construction materials group SigmaRoc PLC (LON:ARC) has snapped up concrete blocks and paving stones maker CCP Building Products for £15.21mln.
SigmaRoc said CCP is the “right next step” and will be an “excellent addition” which will add value to the business.
In the 12 months to the end of August, CCP generated revenue of £20.9mln and delivered adjusted underlying earnings (EBITDA) of £2.6mln.
READ: SigmaRoc doubles profits as new additions show worth
To help finance the deal, the company has increased its credit facility with Santander by £14mln to £34mln. It has also struck a deal to refinance the convertible loan notes which the board considers “favourable”.
“CCP will be a great fit in our journey, immediately accretive and a truly excellent addition to the group,” said chief executive Max Vermorken.
“CCP's management team will continue to drive its performance and continue the growth of an already very impressive business.”
He added: “We are also excited about the support granted by Santander and the CLN holders to help continue our story with further success.”
A brief update in the statement revealed that trading so far this year has been “strong”, with year-on-year revenue, underlying earnings and earnings per share all “significantly improved”.
“Despite weather disruptions and more challenging market conditions, year-on-year revenue growth for the 10-month period to October 2018 was 58%. The group remains on track for a strong full-year performance in line with its expectations.”
Shares jumped 1% to 38p on the back of the news.