Sustainable building products, systems and solutions group Alumasc has agreed, subject to regulatory approval, to acquire manufacturer and distributor of specialist metal rainwater and architectural aluminium goods ARP Group, for a maximum cash consideration of £10m.
The consideration comprises an initial £8.5m, adjusted for net cash/debt and normalised working capital, payable at completion; with additional consideration, capped at £1.5m, payable subject to ARP’s performance over the two years ending November 2024.
This is the first acquisition by Alumasc since 2018 and demonstrates the Group’s strategy to supplement organic growth through earnings accretive acquisitions. ARP will broaden the Group’s existing product offerings and augment the routes to market and bring attractive scaling opportunities for both businesses.
The Acquisition remains conditional upon the UK Competition and Markets Authority having indicated that it has no further questions in relation to the company’s submission regarding the Acquisition, and that it does not intend to make a Phase 2 referral.
The directors expect this process to conclude, and the Acquisition to complete, within three months of today’s date [25 July].
Paul Hooper, chief executive of Alumasc, said: “We are delighted to welcome ARP, along with all our new colleagues to the Alumasc Group. This acquisition aligns with our strategy of accelerating our organic growth with complementary bolt-on acquisitions. ARP will broaden the Group’s existing product offerings, and augment the routes to market for both businesses.”
