The company said the acquisition was agreed based on a cash interest of £2.75 million, which will be funded through existing resources and is expected to be immediately earnings accretive.
McCann will become a subsidiary of Crest Brick Slate and Tile Limited, and Brickability added that the move will diversify its European material supply and product range. It will also “expand the distribution of roofing products into new regions across the UK”.
Today’s acquisition is the first since Brickability’s AIM IPO, and the company said it was in lien with the acquisition strategy it set out on admission.
Speaking on its new business, Brickability said:
“McCann is a specialist importer and distributor of natural and man-made building products, focused on roofing. The company imports high-quality materials form some of the largest producers in Europe, across France, Spain and Belgium. McCann is based in Grays, Essex, United Kingdom. In the year ended 31 December 2019, McCann reported profit before tax of £0.7 million on revenues of £8.2 million.”
Responding to the update, Group CEO Alan Simpson said,
“Bringing McCann into the Brickability Group is very exciting. This is exactly the sort of acquisition we set out to make when we listed: the right price with strong management, great performance and a strong business model that fits the Brickability mould.”
“We look forward to welcoming the McCann team and working with them to keep growing the Group, diversifying our product range and increasing our distribution footprint.”
“We have to keep delivering for our shareholders, so expect our focus on acquisition and expansion to continue.”
The company’s share price currently stands at 75.00p per share, its market cap is £170.54 million.