Brickability Group has announced that is has acquired U Plastics, merchant for facia, soffits and guttering, external cladding and ancillary products, for £6 million.
Founded in 2004, the U Plastics is based in Suffolk and serves a network of customers primarily across East Anglia, Central England, London, and the South East. Management will be retained as part of the acquisition.
In the year ended 31 December 2019 U Plastics reported profit before tax of £1.3 million on revenues of £8 million.
The amount paid by Brickability is divided into an initial £3.6 million on completion of the deal, £1.2 million split in three equal tranches payable over the next three years and an extra £1.2 million payable subject to achieving certain performance criteria. This will be funded from the Brickability's existing resources.
This acquisition follows Brickability’s recent announcement of its acquisition of roofing products specialist McCann, and aims to increase and diversify the group’s product range and geographical presence.
Alan Simpson, CEO of Brickability Group, said: “Brickability is again delivering what it promised at IPO – acquisitions which support the future growth of the Company.
“U Plastics will add to our product offering, increasing and diversifying our range, as well as sharing a route-to-market. The acquisition brings strong management to the Group, which we value.
“I’m very pleased to see the progress we’re making with our acquisition strategy and look forward to seeing the positive contribution in the months and years ahead.”
