Acquisition of U Plastics
11 March 2020
Brickability Group plc
Completes Acquisition of U Plastics
Continues the Group's strategy of supportive and accretive bolt-ons
Brickability Group plc ("Brickability" or "the Group"), a leading construction materials distributor, announces that is has acquired a leading company in its sector, U Plastics Limited ("U Plastics"), for total consideration of £6.0 million.
U Plastics is a merchant for facia, soffits and guttering, external cladding and ancillary products. Founded in 2004, the company is based in Suffolk and serves a network of customers primarily across East Anglia, Central England, London, and the South East. Management will be retained as part of the acquisition.
In the year ended 31 December 2019 U Plastics reported profit before tax of £1.3 million on revenues of £8.0 million.
The total consideration is being satisfied by the payment of an initial £3.6 million in cash on completion, deferred consideration of £1.2 million split in three equal tranches payable in cash over the next three years and an earn out of £1.2 million payable in cash subject to achieving certain performance criteria.
The acquisition will be funded from the Group's existing resources and is expected to be immediately earnings accretive post completion.
This acquisition follows Brickability's recent announcement of its acquisition of roofing products specialist McCann, and once again increases and diversifies the Group's product range and geographical presence.
Alan Simpson, CEO, Brickability Group plc, said:
"Brickability is again delivering what it promised at IPO - acquisitions which support the future growth of the Company.
U Plastics will add to our product offering, increasing and diversifying our range, as well as sharing a route-to-market. The acquisition brings strong management to the Group, which we value.
I'm very pleased to see the progress we're making with our acquisition strategy and look forward to seeing the positive contribution in the months and years ahead."
- ENDS -
The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
Enquiries
Brickability Group plc
John Richards, Chairman
Alan Simpson, CEO
c/o Montfort Communications
Cenkos Securities plc (Nominated adviser and broker) +44 (0) 20 7397 8900
Max Hartley / Max Gould (Nomad)
Julian Morse (Sales)
Montfort Communications +44 (0)20 3770 7916
James Olley
Woolf Thomson Jones
About Brickability
Brickability is a leading construction materials distributor, serving customers across the UK for over 25 years through its mainstream and local networks. The Company supplies over 300m bricks annually and already has 25 sites and sales offices, employing approximately 225 people throughout the UK. Across its three divisions, the Group supplies bricks, roofing, heating, flooring, doors and windows to meet UK housebuilder demand.
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