Brickability Group Acquires HBS NE Limited
Brickability Group PLC
LEI: 213800SK28MWXB3K3P26
24 November 2021
Brickability Group plc
("Brickability" or "the Group")
Brickability Group Acquires HBS NE Limited
Brickability Group plc (AIM: BRCK), the leading construction materials distributor, is pleased to announce the acquisition of HBS NE Limited ("HBS NE") and its trading names HBS New Energies and UPOWA, for a consideration of £5.5 million.
HBS NE marks Brickability's first acquisition in the renewable energy products sector and the 13th strategic acquisition by the Group in the last three years. The acquisition comes as Brickability seeks to broaden its offering for customers and, also importantly, focus on its own sustainability commitments across its divisions.
Decarbonisation of the built environment is driving significant new opportunity in Brickability's sector, with companies needing to commit to their own emission reductions while supporting the transition to net-zero of buildings and the broader supply chain. Cost efficient energy solutions are set to play a key role in supporting the built environment and housebuilding industry in meeting the changing Building Regulations landscape, as well as the UK Government's recently announced deadline for UK listed companies to publish their pathway to net-zero by 2030, in line with the UK Government's 2050 net-zero target.
Founded in 2008, HBS NE is a market-leading renewable energy expert, specialising in the design, supply, installation and maintenance of solar PV, battery storage and electric vehicle charging technologies. With extensive cross-sector installation experience and technical expertise, HBS NE has built an unrivalled track record in the housebuilding, construction, commercial and industrial and public sectors, offering cost-effective, easy to install, energy saving and scalable technologies that simplify the construction of sustainable, zero-carbon homes and buildings.
Through its product brand UPOWA, HBS NE provides a single source of sustainable technology services and products to meet the needs of the new build market. Working in close collaboration with its partners, UPOWA supplies specialised products tailored for housing developers to ensure they achieve compliance with Part L, Part S and the Future Homes Standard in the most efficient and affordable way, as well as strengthening developer supply chains to meet demand. To date, UPOWA has been specified on over 15,000 properties nationwide and currently works with 16 of the Top 25 UK developers including, Barratt Developments, Vistry Group and Taylor Wimpey.
For the year ended 31 March 2021, HBS NE reported unaudited revenue of £8.5 million and normalised EBITDA of approximately £1.1 million.
The consideration is being satisfied by an initial payment of £3.3 million and deferred consideration of £2.2 million payable in cash over the next three years (the "Performance Period"), subject to adjustments to deferred consideration payments for performance against target performance criteria during the Performance Period and for any outperformance of targets during the two years thereafter. The acquisition will be funded from the Group's existing resources and is expected to be immediately earnings accretive post completion.
John Richards, Chairman, Brickability Group plc, said:
"At Brickability we have continued to invest to ensure we remain at the forefront of the industry.
"We strive to respond to the growing demands and requirements of our customers, by expanding our offering both organically and, through the acquisition of complementary businesses with a shared ethos.
"The renewable energy product sector is an area we have been looking to move into for some time as we focus not only on helping our customers address carbon reduction, but also on our own commitments and responsibility to implement sustainable solutions.
"This acquisition marks another important milestone for Brickability and we believe it will deliver significant value for our shareholders as we continue to enhance and diversify the business."
Alan Simpson, CEO, Brickability Group plc, said:
"We are delighted to announce the acquisition of HBS NE.
"As a market leader with a proven track record, we believe the acquisition of HBS NE will further strengthen our strategic positioning within the wider market and enable us to expand into a new product segment.
"We are excited about the opportunities for the business and look forward to welcoming and working alongside HBS NE's management and team of experts. Our new colleagues will help us to accelerate growth and product development, whilst also evaluating how we can implement its solutions across our existing divisions and throughout our supply chain."
James Bull, Founder and Managing Director HBS NE, said:
"I am extremely proud of what we have achieved and the success of HBS NE since it was founded 13 years ago.
"Whilst we have continued to grow organically, we firmly believe that this transaction marks a significant and exciting new chapter for the business.
"Brickability's significant network of long-standing relationships and distribution channels offers HBS NE the opportunity and capacity to scale and develop our national service and product offering more rapidly, further supporting the growing needs of our customers, as requirements within the housebuilding and construction sector continue to evolve."
ENDS
For further information please contact:
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Brickability Group plc John Richards, Chairman Alan Simpson, CEO Mike Gant, CFO |
via Montfort Communications |
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Cenkos Securities plc (Nominated adviser and broker) Ben Jeynes, Max Gould (Corporate Finance) Julian Morse, Alex Pollen (Sales) |
+44 (0) 20 7397 8900 |
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Montfort Communications James Olley Georgia Colkin |
+44 (0) 203 514 0897 |
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About Brickability
Brickability is a leading construction materials distributor, serving customers across the UK and Europe for over 36 years through its national and local networks. The company supplies over 500M bricks annually and has 41 locations across the country with over 500 employees.
Across its 3 divisions the Group supplies bricks, roofing, timber, cladding, heating, flooring, doors and windows to meet demand from both housebuilders and contractors.
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