Tue, 04 Oct 2022 | BUSINESS SALE
Welsh construction materials distributor Brickability Group Plc has agreed a deal to acquire ET Clay Products – a specialist supplier of UK and imported clay bricks and handmade and handcrafted clay roof tiles – in a deal valued at £11.6 million.
The acquisition is seen as an important step in bolstering Brickability’s import division and further expanding the group’s supply base.
The fee represents around a 3.8x multiple of ET Clay Products’ £3 million adjusted EBITDA for the year ending July 30 2022, generated on unaudited revenues of £44.3 million. The consideration will be satisfied via an initial £8.1 million payment and a deferred consideration of £3.5 million payable in cash subject to target performance criteria over a three year Performance Period.
The full consideration will be satisfied in cash and funded from Brickability Group’s existing cash resources. The acquisition is expected to be immediately earnings accretive once it has completed, with ET Clay Products bringing new customers to Brickability Group, especially within the merchants channel.
ET Clay Products was founded more than 25 years ago and has grown to become an important supplier and importer of clay facing bricks and clay roofing tiles to the UK construction sector. The firm is headquartered in South Ockendon and also has a depot in the West Midlands, as well as an office in Hartlepool.
Brickability Group Plc CEO Alan Simpson said: “The acquisition of ET Clay Products provides another important step in the growth of our Import Division by further expanding the supply base of the Group through new access to a range of overseas manufacturers.”
The acquisition comes during a turbulent time for the UK construction industry, as operators struggle with issues including rising costs for labour and raw materials, labour shortages and supply chain disruption. Read more about how this is influencing M&A in the construction sector.
Find businesses for sale here.
If you are looking for an exit, we can help!.
Due to retirement a fantastic opportunity has arisen to purchase a thriving, family run flooring business based in the heart of Ayrshire, Scotland. Established over 35 years by the current owner the business demonstrates substantial year on year grow...
Established in 1973 the business has been built up by the current owners and demonstrates substantial year on year growth. It benefits greatly from several high-profile clients across the country within a variety of different industries.
A well-respected business since 2018, located in Grays is now for sale. It has been growing since 2018 and the current owner is ready to sell to a suitable buyer.
Interflex Limited, a manufacturer of automotive parts in Not...
Fox Industrial Services Limited, a construction firm based i...
Brickability Group, a distributor of construction materials,...
Construction materials distributor Brickability Group has ac...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.