Brickability Group PLC on Wednesday said it has acquired Modular Clay Products Ltd for £4.8 million, which it expects will be ‘immediately earnings accretive’.
The Bridgend, Wales-based construction materials distributor said Modular Clay Products is a supplier of UK and imported clay facing bricks.
The acquisition is being satisfied by an initial cash payment of around £3.3 million and a deferred payment of around £1.4 million in cash over the next three years. The acquisition will be funded by Brickability's existing resources.
Chief Executive Alan Simpson said: ‘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.’
Modular Clay Products reported revenue in 2021 of £10.5 million and normalised earnings before interest, tax, depreciation and amortisation of £1.3 million.
Brickability said that the acquisition is expected to be immediately earnings accretive post-completion.
Shares in Brickability were down 0.6% to 88.00 pence each in London on Wednesday afternoon.
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