Tue, 26 Jul 2022 | BUSINESS SALE
Yorkshire-based construction products supplier SIG has agreed to acquire Miers Construction Products (MCP) in a deal that could be worth up to £36.5 million. SIG will pay an initial sum of £28.5m to the company, with a deferred cash payment of £1.8m payable over two years and up to £6.7m in contingent payments subject to MCP’s performance during the period up to December 31, 2023.
If the full £36.5m were to be reached, it would be almost an 8.5x multiple of MCP’s nearly £4.3m pre-tax profit for the year ending September 30, 2021 (vs £1.2m the previous year), generated on revenue of £46.7m (vs £34.3m in 2020). After tax, the company’s profits were £3.4million, up from £955,623 a year earlier.
SIG described the St Neots, Cambridge-based MCP as a solid strategic fit that expands its UK offering of high-performance construction fasteners and accessories. The buyer added that MCP would align with its business model of providing “superior service through deep supplier partnerships and specialist expertise” and strengthen its existing relationships with end users in a number of key industries.
The combination of MCP’s strong global supply chain with SIG’s product range and national supply network should also provide significant growth opportunities for both companies. Post-acquisition, MCP will continue to operate under its current brand, with its existing management team remaining in place.
SIG CEO Steve Francis said: “We are delighted to announce the acquisition of MCP, which demonstrates the implementation of the SIG Group’s strategy of growth both organically and through carefully targeted and value-creating. MCP is a very attractive specialized company with a strong brand, a great reputation for quality of service, specialization and technical sector expertise. These key elements have created a company that has the ability to sustainably grow ahead of the market. »
“MCP illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term. We welcome the skilled and committed management team and employees of MCP to SIG and look forward to working with them.
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