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.
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