Brickability Group has acquired fascia, soffits and guttering merchant U Plastics for £6 million.
U Plastics is also merchant for external cladding and ancillary products. The Suffolk-based company serves a network of customers primarily across East Anglia, Central England, London, and the South East. Management will be retained as part of the acquisition.
The company reported profit before tax of £1.3 million on revenues of £8 million in the year ended 31 December 2019.
The total consideration is being satisfied by the initial £3.6 million payment million in cash on completion, deferred consideration of £1.2 million split in three equal tranches payable in cash over the next three years and an earn out of £1.2 million payable in cash, subject to achieving certain performance criteria.
The acquisition will be funded from the Group’s existing resources and is expected to be immediately earnings accretive post completion.
This acquisition follows Brickability’s recent buyout of roofing products specialist McCann.
Alan Simpson, chief executive officer of Brickability, said: “U Plastics will add to our product offering, increasing and diversifying our range, as well as sharing a route-to-market. The acquisition brings strong management to the Group, which we value.
“I’m very pleased to see the progress we’re making with our acquisition strategy and look forward to seeing the positive contribution in the months and years ahead.”
