Concrete manufacturer acquired in £38m deal

A pre-cast concrete manufacturer with a West Midlands base has been acquired by a larger rival in a deal worth £38.3m.

CPM Group, which specialises in underground water management projects, has been acquired by hard landscaping manufacturer, Marshalls.

Although headquartered in Somerset, CPM’s technical centre is based in Wombourne and it has an operation in Leek specialising in manholes.

Martyn Coffey, chief executive of Marshalls, said: “Marshalls’ 2020 Strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on the identified growth areas of water management, security and mineral products.

“The acquisition of CPM represents a significant step towards achieving one of our strategic goals. CPM is a profitable business with a strong track record of quality and service, primarily targeting public sector and commercial end users and the acquisition will expand Marshalls’ product range into below ground drainage.”

The business is expected to trade, initially as Marshalls CPM, within the wider Marshalls Group.

CPM was established in 2004 and reported revenue of £51.2m and pre-tax profit of £4.6m in the financial year ended December 2016. It employs around 350 people.

The company manufactures and sells concrete pipes, containment and inspection chambers, manhole covers, retaining walls and other bespoke industrial concrete products for the construction sector, including new housebuilding and major infrastructure projects such as Hinkley Point A, HS2 and A14 Cambridge. CPM reported gross assets of £33.0m as at December 2016.

The acquisition is expected to be earnings enhancing for Marshalls in its first full year after completion.

Mike Stacey, former managing director of CPM, will remain with the business and will join Marshalls’ senior management team, reporting to Martyn Coffey.

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