Brickability Group acquires ET Clay Products at 3.8x EBITDA
Tue, 04 Oct 2022 | BUSINESS SALE
Welsh construction materials distributor Brickability Group Plc has agreed a deal to acquire ET Clay Products – a specialist supplier of UK and imported clay bricks and handmade and handcrafted clay roof tiles – in a deal valued at £11.6 million.
The acquisition is seen as an important step in bolstering Brickability’s import division and further expanding the group’s supply base.
The fee represents around a 3.8x multiple of ET Clay Products’ £3 million adjusted EBITDA for the year ending July 30 2022, generated on unaudited revenues of £44.3 million. The consideration will be satisfied via an initial £8.1 million payment and a deferred consideration of £3.5 million payable in cash subject to target performance criteria over a three year Performance Period.
The full consideration will be satisfied in cash and funded from Brickability Group’s existing cash resources. The acquisition is expected to be immediately earnings accretive once it has completed, with ET Clay Products bringing new customers to Brickability Group, especially within the merchants channel.
ET Clay Products was founded more than 25 years ago and has grown to become an important supplier and importer of clay facing bricks and clay roofing tiles to the UK construction sector. The firm is headquartered in South Ockendon and also has a depot in the West Midlands, as well as an office in Hartlepool.
Brickability Group Plc CEO Alan Simpson said: “The acquisition of ET Clay Products provides another important step in the growth of our Import Division by further expanding the supply base of the Group through new access to a range of overseas manufacturers.”
The acquisition comes during a turbulent time for the UK construction industry, as operators struggle with issues including rising costs for labour and raw materials, labour shortages and supply chain disruption. Read more about how this is influencing M&A in the construction sector.
Find businesses for sale here.
If you are looking for an exit, we can help!.
Share this article
Latest Building and Construction Businesses for Sale
Grounds Maintenance Provider
South East, UK
The company offers a wide range of gardening services, including tree surgery, fencing and landscaping, garden and grounds maintenance, as well as the resale of plants and materials, and sundries. Their diverse service offering caters to both B2C and...
Glazing and Home Improvement
North West, UK
The company specialises in double glazing, door supply and installation, and single-storey extensions, catering primarily to the private sector and domestic customers in the Northwest region. Founded in the 1970s, this glazing specialist boasts a tra...
National Electrical Contractors
UK Wide
National electrical contractors which has been operated by this client since 2014 and is now brought to market due to other business interests, following over 20 years in the industry.