Marshalls makes £38m acquisition

Landscaping and construction supplier Marshalls has swooped for a pre-cast concrete manufacturer specialising in underground water management solutions in a £38.3m deal.

The Elland-based firm said the acquisition of CPM Group is part of its ‘2020 Strategy’, 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.

Martyn Coffey, chief executive of Marshalls, said: “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.

“We expect the business to trade, initially as Marshalls CPM, within the wider Marshalls Group.”

Marshalls manufactures and distributes hard landscaping products, concrete and natural stone paving), minerals including aggregates, ready mix mortar and street furniture.

In the year to the end of December 2016, the group reported revenue of £396.9m and profit before tax of £46m. It has manufacturing sites in the UK and Belgium, and overseas offices in the US, Dubai and China. It employs around 2,200 people.

CPM was established in 2004 and reported revenue of £51.2m and profit before tax of £4.6m in the year to the end of December. It operates from two manufacturing sites at Mells, in Somerset, and Pollington, near Goole in East Yorkshire, with ancillary offices in the Midlands and Scotland, employing around 350 people.

CPM 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.

The acquisition of CPM is expected to be earnings enhancing 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.

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