Epwin Group makes £27m acquisition
SOLIHULL-based windows manufacturer Epwin Group has acquired Stormking Plastics for an initial £27m.
It is the listed company’s second acquisition in three months. It is for a consideration in cash and Epwin Group shares with part deferred and dependent upon the future performance of the business.
Epwin says the acquisition is in line with its stated strategy to broaden its range of low maintenance building products, its technical capabilities and routes to market.
Tamworth-based Stormking Plastics isa leading supplier of moulded GRP building components to the house building and construction industry. Its product range includes dormers, chimneys, bay window roofs, entrance canopies, copings and support brackets, as well as similar time-saving components for the housebuilding and construction sector.
The company, which has 200 staff, was founded in 1985 by Gary King and Barry Whitehall, both of whom had strong links with the building industry.
Both of the founders have recently retired after 30 years of running the business, having handed over day to day management to a new management team, who will now take the business forward as part of Epwin Group.
In the financial year ended 28 February 2015, Stormking reported turnover of £22.8m and underlying earnings before interest, taxation, depreciation and amortisation costs, (EBITDA), of £3m.
In the current year to February 2016, performance is expected to deliver turnover in the order of £25m and an underlying EBITDA, of circa £4.5m resulting from increased use of the products, stronger new build sector trading and new management team projects looking at efficiency opportunities.
Jon Bednall, chief executive officer of Epwin Group, said: “I am delighted to announce the acquisition of Stormking Plastics and extend a warm welcome to the group to the team there.
“Stormking adds further to the group’s range of low maintenance building products as well as the plastics materials technologies that we can draw upon. The acquisition represents a further significant step in the development of the group and is expected to enhance earnings in 2016.”
Mark Stokes, managing director of Stormking Plastics, said: “Joining Epwin Group is excellent news for the future of Stormking Plastics, its employees and customers.
“It will enable us to build on the strong foundations laid over more than 30 years by Gary and Barry and gives us the opportunity to expand our product range as well as develop further routes to market in the future.”
