Mon, 22 Jan 2024 | BUSINESS SALE
Brickability Group, a distributor of construction materials, has completed the acquisition of specialist cladding installation and remediation contractor Topek Southern Ltd (TSL), in a deal that could be worth up to £48 million.
TSL, which is headquartered in Hampshire, provides facade systems, roofing, curtain wall and fire remediation services for both live and occupied sites. The firm is a principal contractor on industrial and commercial projects across the UK, with a portfolio that includes office buildings, sports stadiums, student accommodation and hotels.
The deal valuation represents just under a 6x multiple of TSL’s profits before tax of £8.1 million for the year ending August 31 2023, generated on audited revenue of £38.7 million.
Bridgend-headquartered Brickability said that the deal further expands its operations in the South of England, following the recent acquisition of Group Topek Holdings Ltd, and would complement its offering in the cladding remediation market. The group added that the deal creates a full-service cladding installation and remediation contracting operation with a national reach.
The acquisition, Brickability’s 14th since it went public in 2019, is expected to be earnings accretive in the first full year and marks another step in the group’s diversification. Since its IPO, Brickability has sought to build a diversified multi-business strategy, aimed at broadening and deepening its product portfolio and geographic presence.
Brickability Chairman John Richards said: "We are delighted to announce the acquisition of Topek Southern soon after the group's acquisition of Group Topek Holdings. In addition to further diversifying the group's product and revenue base, the acquisition gives the group a truly national presence in the cladding market.”
Alan Simpson, Chief Executive, Brickability, added: "As previously reported, our bricks and building materials division has seen cladding products supply go from strength to strength. Topek Southern will sit within the group's contracting division alongside Group Topek Holdings and will further strengthen the group's national presence in the market across cladding supply and installation as we continue to deliver upon the group's diversified multi-business strategy."
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