Marshalls, a hard landscaping manufacturer, has acquired CPM Group, a pre-cast concrete manufacturer specialising in underground water management solutions, for a total cash consideration of £38.3m.
CPM was established in 2004 and reported revenue of £51.2m and profit before tax of £4.6m in the financial year ended 31 December 2016.
It operates from two manufacturing sites at Mells, in Somerset, and Pollington, near Goole in East Yorkshire, with ancillary offices in the Midlands and Scotland, employing around 350 people.
CPM reported gross assets of £33.0m as at 31 December 2016.
The acquisition of CPM is expected to be earnings enhancing in its first full year after completion.
Martyn Coffey, chief executive of Marshalls, said: "Marshalls' 2020 Strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on the identified growth areas of water management, security and mineral products.
"The acquisition of CPM represents a significant step towards achieving one of our strategic goals. CPM is a profitable business with a strong track record of quality and service, primarily targeting Public Sector and Commercial end users and the acquisition will expand Marshalls' product range into below ground drainage. We expect the business to trade, initially as Marshalls CPM, within the wider Marshalls Group."
At 9:10am: (LON:MSLH) Marshalls PLC share price was +29.95p at 472.15p