Construction materials

SIG rushes for building materials company in £36.5m deal | Yorkshire Deals News

Listed specialist building products distributor SIG has acquired consideration in a £36.5m deal.

The Sheffield-based company has acquired the entire issued share capital of Miers Construction Products Ltd (MCP).

MCP provides specialty construction products to subcontractors, builders and prime contractors. It has its head office in St Neots and branches in Huntingdon, Airdrie, Brimingham, Bordon, Launceston, Haydock and Weston-Super-Mare.

For the year to September 30, 2021, the company reported revenue of £46.7m and operating profit of £4.4m.

SIG acquired the business for an initial cash consideration of £28 million, debt-free and cash-free. A further contingent cash payment of up to £6.7 million will be payable, subject to business performance during the period to 31 December 2023, together with a deferred cash payment of 1. £8 million, payable in 24 months.

MCP was acquired from two founding shareholders and four members of the management team.

Current management will remain with the company and MCP will continue to operate under its existing brand.

SIG said the acquisition would expand its UK offering of high-performance construction accessories and fasteners, with “significant growth opportunities” across the combined business.

Steve Francis, Chief Executive Officer of SIG, said: “We are delighted to announce the acquisition of MCP, which demonstrates the implementation of the SIG Group’s strategy of growing both organically and through careful acquisitions. targeted and value-creating.

“MCP is a very attractive specialist company with a strong brand, a great reputation for quality of service, specialization and technical expertise in the sector. These key elements have created a company that has the ability to grow sustainably ahead of the market.

“MCP exemplifies the opportunities to accelerate through acquisition our path to 5% margins over the medium term. We welcome MCP’s skilled and committed management team and employees to SIG and look forward to work with them.”

SIG is advised by Peel Hunt and Investec Bank.

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