Brickability Group PLC - Bridgend, Wales-based distributor of construction materials - Acquires Topek Southern Ltd, paying up to £48 million in total. The purchase of Hampshire-based Topek Southern follows Brickability’s acquisition of Glasgow-based Group Topek Holdings Ltd back in October. The initial consideration for Topek Southern is £27.3 million, composed of £17.3 million in cash and £10.0 million in shares. Brickability issues 17.1 million shares, equal to 5.7% of its existing total, at 58.5 pence each. Brickability will pay up to an additional £20.7 million in deferred consideration, contingent on Topek Southern’s business performance over the next three years.

The two companies are in similar businesses. Topek Southern focuses on building cladding installation and remediation, working on hotels, office buildings and sports stadiums across the UK. In the financial year that ended August 31, Topek Southern recorded pretax profit of £8.1 million on £38.7 million in revenue.

‘We are delighted to announce the acquisition of Topek Southern soon after the group’s acquisition of Group Topek Holdings,’ says Brickability Chief Executive Officer Alan Simpson. ‘In addition to further diversifying the group’s product and revenue base, the acquisition gives the group a truly national presence in the cladding market.’

Brickability paid a similar amount for Group Topek: £45 million split between £27.3 million in initial cash and deferred consideration of £17.7 million.

Current stock price: 57.53p, up 2.7% early Monday in London

12-month change: down 12%

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