Marshalls PLC (LON:MSLH) on Wednesday said it had acquired concrete brick maker Edenhall Holdings for up to £17.2mln and upped its annual guidance.
The company, which provides paving products for gardens and driveways, said the deal would include an initial cash payment of £11.8mln and a deferred consideration of up to £5.4mln.
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“Marshalls' strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on those parts of the market where higher levels of growth are anticipated, including new build housing, road, rail and water management,' CEO Martyn Coffey said in a statement.
“The acquisition of Edenhall represents a significant step towards achieving further growth in the new build housing market,” he added.
The landscaping group said it expected its full-year results to exceed its expectations, driven by better than expected revenue growth in the second half.
Revenue in the 11 months to30 November was up 14% at £465mln.
Shares in the company were 4% up at 433.75p in early trade.