Brickability Group PLC (LON:BRCK) is acquiring Taylor Maxwell Group, a supplier of timber and non-combustible cladding, for up to £63mln.
The deal will be part-funded by an oversubscribed £55mln sale of shares at a 8% discount to the closing price on Tuesday.
A total of £40mln will be handed over in cash and £10mln will be satisfied by issuing shares. There will also be a deferred element based on future profitability.
Brickability, one of the UK’s largest construction materials distributors, said the Taylor Maxwell acquisition will be earnings accretive, while it also helps diversify the company’s product offering.
It is the company’s 11th purchase since 2018, though it is one that has been in the pipeline for some time, according to chief executive Alan Simpson.
"Taylor Maxwell is a business we have earmarked for acquisition since IPO as we believe the union will bring significant short and long-term benefits to both companies and customers,” he explained.
"Access to Taylor Maxwell's longstanding relationships, distribution channels and local knowledge will greatly improve Brickability's access to the UK marketplace while also delivering procurement, revenue and structural synergies.
Demand for Brickability stock was such that a number of current shareholders, including management and directors, have sold equity worth a further £38mln.