Thu, 07 Apr 2022 | BUSINESS SALE
Landscaping products firm Marshalls has announced an agreement to acquire roofing system manufacturer Marley Group in a deal worth £535 million. The acquisition fee represents a multiple of close to 4.5x Marley’s £119.5 million turnover for 2020, on which it generated £55.3 million gross profit and post-tax profit of £22.2 million.
Marshalls feels that the acquisition will help drive its plans to become the UK’s leading building products manufacturer over the next five years. Furthermore, it expects that the deal will be double-digit earnings per share accretive within the first full year post-completion.
The acquisition sees Marshalls move into the pitched roofing sector, with Marley manufacturing a wide range of roofing solutions, including concrete and clay tiling, solar panels, roof fittings and timber battens, along with other roofing accessories. Post-acquisition, Marshalls plans for Marley to remain a standalone entity, operating with its existing management in place.
Marshalls will acquire the company from current owner Inflexion Private Equity. Under Inflexion’s ownership, Marley has itself been acquisitive, diversifying its business in 2020 with the acquisition and integration of solar panels manufacturer Viridian Solar. Last year, Inflexion shelved plans to float Marley on the stock market.
The acquisition will go through on a cash and debt free basis, with £371 million of the consideration funded through the combination of a £187 million placing and open offer, as well as the issuing of 24.1 million shares with a value of approximately £164 million.
Commenting on the acquisition, Marshalls CEO Martyn Coffey said: "The acquisition of Marley represents a significant step towards achieving our strategic goal to become the UK's leading manufacturer of products for the built environment.”
“Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business.”
Read more about consolidation within the UK construction market.
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...
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.