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(Alliance News) - Construction material distributor Brickability Group PLC said Wednesday it will acquire U Plastics Ltd for GBP6.0 million in total.
Suffolk-based U Plastics is a merchant for guttering, external cladding and ancillary products.
Brickability will pay an initial GBP3.6 million in cash, a deferred consideration of GBP1.2 million in three equal tranches over the next three years, and an earn out of GBP1.2 million dependent on U Plastics reaching certain performance milestone.
Brickability will fund the acquisition using its existing resources, and is expected to be immediately earnings accretive after completion.
"Brickability is again delivering what it promised at IPO - acquisitions which support the future growth of the company. 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," said Chief Executive Officer Alan Simpson.
Shares in Brickability were down 1.2% at 66.20 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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