Landscaping manufacturer Marshalls acquires £33m company
Marshalls plc, the Elland-based landscaping manufacturer, has acquired an independent concrete brick manufacturer and supplier for £11.8m.
Edenhall Holdings Limited has been taken over by Marshalls Mono Limited, which is a wholly owned subsidiary of Marshalls plc.
In addition to the cash payment of £11.8m, a deferred consideration is payable up to a maximum of £5.4m and dependent on business performance over a three year period.
Established in 1997, Edenhall generated revenues from continuing operations of £33m and pre-tax profits £2.8m in the financial year ended 31 December 2017. The company operates from 10 manufacturing sites across the UK employing around 250 people.
Edenhall, headquartered in Newport in South Wales, manufactures and sells a range of solid and perforated concrete bricks, facings and walling products as well as a variety of cast stone products.
In the year ending 31 December, Marshalls reported revenue of £430.2m and pre-tax profits of £52.1m. Employing around 2,300 people, the firm has manufacturing sites in the UK and Belgium, and overseas offices in the US, Dubai and China.
Marshalls said that the acquisition of Edenhall is expected to be earnings enhancing in its first full year after completion.
Martyn Coffey, chief executive of Marshalls, said: “Marshalls’ strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on those parts of the market where higher levels of growth are anticipated, including New Build Housing, Road, Rail and Water Management.
“The acquisition of Edenhall represents a significant step towards achieving further growth in the New Build Housing market. Edenhall is a profitable business with a strong track record of quality, reliability and service, primarily targeting builders’ merchants and regional and national housebuilders.
“The acquisition is in line with our stated strategy of expanding into adjacent building products related to New Build Housing.”
Andrew Cotton, managing director of Edenhall, will remain with the business and join Marshalls’ senior management team.
Marshalls was advised on the acquisition by Pinsent Masons.
