SIG snaps up insulation firm on its £200m acquisition trail
CONSTRUCTION supplier SIG is charging ahead with an aggressive acquisition programme, announcing its latest acquisition the Ainsworth Group, an insulation business.
The acoustic,fire and building insulation products firm was bought for an undisclosed sum by the Sheffield firm.
The firm is targeting around £200m on acquisitions between 2015 and 2017.
So far this year, £46m has been spent on “infill” businesses, four of which were in the UK roofing sector, three were insulation and air handling firms in mainland Europe.
The firm also acquired an interiors business in the Middle East, where SIG has had a footprint since 2007.
The Ainsworth Group operates from six branches across the South East, South West, Midlands and Wales.
SIG has over 9,000 employees and last year generated revenues of £2.6bn across 650 branches.
In the firm’s half year results, revenues dipped for the six months to 30 June to £1.24bn from £1.31bn for the same period in 2014.
However the firm managed to double its pretax profits from £11.8m in their 2014 half yearlies, to £26.8m.
Stuart Mitchell, chief executive of SIG said:”The first stage of the Group’s business transformation programme, to improve procurement, is increasingly embedded within SIG and delivering significant savings. The next stage, a review of our supply chain, is progressing well with findings to be presented towards the end of this year.
“Looking further ahead the Group is encouraged by the clear opportunities to improve efficiency in the business, particularly in procurement and supply chain, and to drive growth as our markets recover.”
The Leeds office of national law firm Irwin Mitchell advised SIG on the deal. The team included corporate advisors Philip Goldsborough, James Foster and Natalie Hager, real estate lawyer Clare Davitt, employment law specialist Padma Tadi and tax specialist Alex Barnes.
Philip Goldsborough, who led the Irwin Mitchell team on the deal, said: “We are delighted to have advised SIG on the acquisition of the Ainsworth Group. This transaction is Irwin Mitchell’s first for SIG and was a great team effort.
“We are delighted to welcome such an important Yorkshire-based plc as a client of the firm.”
