Michelmersh poised to buy FLB for £10m
Published: 01 March, 2010
HAMPSHIRE: Michelmersh Brick Holdings announced that it has conditionally agreed to acquire Freshfield Lane Brickworks (FLB), an independent manufacturer of clamp-fired stock bricks based in Danehill, Sussex, for a total consideration of £10m.
FLB will be acquired with stock, work in progress and net receivables totalling approximately £2m and net debt of approximately £1.1m.
The directors believe that there are various compelling strategic reasons for the acquisition. FLB is a well-established, long-standing and successful business with a strong, recognised brand name. It is recognised as the sole remaining independent manufacturer of clamp-fired bricks in southern England·
FLB's strong brand name and its premium product range will be highly complementary to Michelmersh's existing products and expansion of Michelmersh's operations in the important South East region of the country.
The acquisition will also broaden Michelmersh's customer base and will result in the combination of two experienced management and operations teams.
Michelmersh will strengthen its board through the appointment of two executive directors of FLB, Alan Hardy and Frank Hanna.
The enlarged group should additionally have access to greater acquisition and organic growth opportunities, said Michelmersh.