Construction products business acquired in £36.5m deal
SIG, a Sheffield-headquartered supplier of specialist insulation and sustainable building products, has acquired Miers Construction Products Ltd (MCP) for an initial cash consideration of £28m.
A further contingent cash payment of up to £6.7m will be payable, subject to the performance of the business during the period ending on 31 December 2023, together with a deferred cash payment of £1.8m, payable in 24 months.
Steve Francis, chief executive officer of SIG, said the deal demonstrates delivery of SIG’s Group strategy to grow both organically and through carefully targeted value-enhancing acquisitions.
He added: “MCP is a highly attractive specialist business with a strong brand, a great reputation for quality service, and technical sector specialism and expertise.
“These key elements have created a business that has the ability to grow sustainably ahead of the market.
“MCP illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term. We welcome MCP’s knowledgeable and committed management team and employees to SIG and look forward to working with them.”
MCP was acquired by SIG from two founding shareholders and four members of MCP’s management team.
The existing management team, which has delivered MCP’s strong sales growth of about 20% CAGR in recent years, are remaining with the business which will continue to trade under its existing brand.
Established in 2010 and headquartered in Cambridgeshire, MCP is a provider of construction products to specialist sub-contractors, builders and main contractors.
For the year ended 30 September 2021, the company reported revenue of £46.7m and operating profit of £4.4m. In the current year, the business reported unaudited revenue of £55.5m and adjusted EBITDA of £5.1m for the 12 month period to 31 May 2022.
Pinsent Masons acted as legal advisers to SIG for the acquisition.