Brickability Group PLC (AIM:BRCK) said it is acquiring Modular Clay Products Ltd (MCP), a supplier of UK and imported clay facing bricks to meet bespoke client specifications, for £4.75mln.
The AIM-listed construction materials supplier said it will use existing resources to fund the acquisition, which it expects to be immediately earnings accretive post completion.
MCP reported unaudited revenue of £10.5mln and normalised earnings (EBITDA) of roughly £1.3mln for the past calendar year.
Based in Colgate, West Sussex, MCP works closely with architects, providing design advice and consultation to find the ideal brick product. As well as working on prestigious projects in the UK and Ireland, including The Shard in London, the business has supplied to projects including housing, education, healthcare, leisure and recreation.
Brickability will pay an initial £3.33mln in cash, with a deferred consideration of £1.43mln payable in cash over the next three years, subject to performance criteria.
Alan Simpson, chief executive of Brickability, said: “The group currently addresses the specification sector through our Taylor Maxwell and Bespoke Brick businesses. The acquisition of Modular Clay Products will significantly increase our presence in the specification sector and bring the group new access to a range of European manufacturers further boosting our strong import capabilities.”