Deal will push firm鈥檚 brick output to more than 100 million a year
Brick manufacturer Michelmersh has acquired South Yorkshire-based rival Carlton Main Brickworks for 拢31.1m.
Based at Grimethorpe, near Barnsley, Carlton reported turnover of 拢13.1m and a pre-tax profit of 拢2.6m for the 12 months to 31 March 2016.
The brick maker, which dates back to the 1880s, operates from a 38ha site and manufactures up to 37 million bricks a year.
The AIM-listed Michelmersh said Carlton 鈥渉as a strong product offering that complements the geography and market segment of Michelmersh鈥�.
It added: 鈥淐arlton is expected to increase Michelmersh鈥檚 output to over 100 million bricks per annum, an increase of over 40%.鈥�
Michelmersh posted a turnover of 拢30.1m and pre-tax profit of 拢4.6m in 2016, with sales of 69.4 million bricks.
The firm said: 鈥淭he acquisition will give Michelmarsh access to new regional markets, provide opportunities for cross selling and product synergies and increase output efficiency. Other operational synergies are expected to benefit the enlarged Group over time.
鈥淭he acquisition gives the company the ability to expand its quality product offering in line with our premium-centric core strategy, and consequently will increase the group鈥檚 annual output to 100 million bricks.
鈥淭he board considers that the acquisition of Carlton is an important strategic step forward in the growth of the Company, adding significant scale, output and earnings to the Group.鈥�
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