UK-based building materials group Marshalls has signed a conditional agreement to buy the complete issued share capital of Marley Group for a total enterprise value of £535m on a cash free and debt free basis.
Marley is a manufacturer of pitched roof systems.
The issued share capital of Marley is being bought from Inflexion Buyout V Investments LP, Inflexion Supplemental V Investments Limited Partnership (Inflexion) and some management sellers.
Marshalls called the acquisition a ‘compelling strategic fit’ which will speed up its five-year plan to become a leading manufacturer of products for the built environment.
It expects the deal to be double-digit earnings per share accretive in the first full year after completion.
Marley will be led by its existing management team and will initially run as a standalone division within the Marshalls group.
The company stated that £371m will be financed by a combination of a £187m firm placing and open offer. About 24.1 million in consideration shares, worth a total of around £164m, will be issued to unnamed management sellers.
The transaction is expected to be completed on 29 April after the capital raise and general meeting.
Marshalls CEO Martyn Coffey said: “The acquisition of Marley represents a significant step towards achieving our strategic goal to become the UK’s leading manufacturer of products for the built environment.
“Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business.
“We would like to welcome Marley’s management team and colleagues to the Marshalls family and look forward to working with them in the coming years.”
Marley CEO David Speakman said: “Marley is a robust business with a strong future ahead of it. As part of the Marshalls family, I believe we will be extremely well-positioned to continue our growth strategy to the benefit of our colleagues, customers and partners.”
Image: The transaction is expected to be completed on 29 April. Credit: Pexels from Pixabay.