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LONDON (Alliance News) - James Latham PLC said Friday it has acquired Irish timber merchant Abbey Wood Agencies Ltd for EUR2.6 million, the company's first deal outside of the UK.
"There are strong synergies between the two companies and it complements our existing business in Ireland that is currently serviced from our Leeds depot," Chair Nick Latham said.
The UK-listed timber and panel products distributor has bought Abbey Woods for an initial of EUR1.8 million with a further payment of between EUR300,000 to EUR400,000 due for the net assets subject to completion accounts.
In addition, an earn out of up to EUR400,000 is payable over the next two years subject to Abbey Wood achieving revenue targets.
James Latham will pay using existing cash.
For the year ended February 28, Abbey Woods generated revenue of EUR7.5 million and earnings before interest, taxes, depreciation and amortisation of EUR379,000.
Abbey Woods, which operates from Dublin and Cork, specialises in the supply of Accoya, hardwood and softwood timber, hardwood decking, composite decking, cladding, worktops and wood components for use in a variety of market segments.
Shares in James Latham were trading 2.0% higher at 739.74 pence each on Friday afternoon.