Brickability Group PLC - Bridgend, Wales-based distributor of construction materials - Acquires Topek Southern Ltd, paying up to GBP48 million in total. The purchase of Hampshire-based Topek Southern follows Brickability's acquisition of Glasgow-based Group Topek Holdings Ltd back in October. The initial consideration for Topek Southern is GBP27.3 million, composed of GBP17.3 million in cash and GBP10.0 million in shares. Brickability issues 17.1 million shares, equal to 5.7% of its existing total, at 58.5 pence each. Brickability will pay up to an additional GBP20.7 million in deferred consideration, contingent on Topek Southern's business performance over the next three years.
The two companies are in similar businesses. Topek Southern focuses on building cladding installation and remediation, working on hotels, office buildings and sports stadiums across the UK. In the financial year that ended August 31, Topek Southern recorded pretax profit of GBP8.1 million on GBP38.7 million in revenue.
"We are delighted to announce the acquisition of Topek Southern soon after the group's acquisition of Group Topek Holdings," says Brickability Chief Executive Officer Alan Simpson. "In addition to further diversifying the group's product and revenue base, the acquisition gives the group a truly national presence in the cladding market."
Brickability paid a similar amount for Group Topek: GBP45 million split between GBP27.3 million in initial cash and deferred consideration of GBP17.7 million.
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By Tom Waite, Alliance News editor
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Brickability Group (BRCK)