Brickability Group PLC (AIM:BRCK) said it is paying up to £6.5mln to acquire Surrey-based Beacon Roofing, a supplier of roofing services across the South East of England, predominantly for national housebuilders and developers.
The acquisition is expected to be immediately earnings accretive post-completion.
The construction materials distributor said it would strengthen its existing roofing services business, following the purchase of Hampshire-based roofing contractor Leadcraft last August.
Alan Simpson, Brickability’s chief executive, said Beacon would be “another great addition to our profitable Roofing Services division, further expanding our coverage in the South East”, adding that Leadcraft “continues to perform strongly”.
Beacon reported unaudited revenue of £8.9mln and underlying earnings (EBITDA) of roughly £1.1mln for the 12 months to 31 January 2022.
Using its existing cash resources, Brickability is paying £4.5mln cash up front and has agreed a deferred cash consideration of £2mln payable over the next three years, subject to adjustments for performance against targets.