Michelmersh acquisition targets new markets
BRICK maker Michelmersh has acquired 25% shareholding in Jeffery Building Products, a brick distribution business covering the north of England.
The consideration cost the firm, which has interests in Shropshire, £50,000.
A company statement said: “The acquisition of this stake in Jeffery represents a strategic partnership in a geographical area where Michelmersh has had limited representation.
“It presents an opportunity to expand sales and establish a presence in a potentially lucrative market.
“Application has been made to the London Stock Exchange for the consideration shares to be admitted to trading on AIM.
“It is expected that admission and dealings will commence on April 6.”
In addition to the acquisition announcement, a trading update from Michelmersh said that orders, sales and production of brick products in Q1 of 2011 were ahead of budget.
“The board is encouraged for the prospects for 2011,” it added.
Preliminary results for the 12 months ended December 31, 2010, will be published on May 9.
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