Marshalls PLC Acquisition of CPM Group (0144U)
October 19 2017 - 2:00AM
UK Regulatory
TIDMMSLH
RNS Number : 0144U
Marshalls PLC
19 October 2017
19 October 2017
ACQUISITION OF CPM GROUP LIMITED
Marshalls plc ("Marshalls" or "the Group"), a leading hard
landscaping manufacturer, announces today the acquisition of CPM
Group Limited ("CPM"), a pre-cast concrete manufacturer
specialising in underground water management solutions, for a total
cash consideration of GBP38.3m.
Commenting on the transaction, Martyn Coffey, Chief Executive of
Marshalls, said:
"Marshalls' 2020 Strategy is to grow both organically and
through carefully selected earnings enhancing bolt-on acquisitions
with a particular focus on the identified growth areas of water
management, security and mineral products. The acquisition of CPM
represents a significant step towards achieving one of our
strategic goals. CPM is a profitable business with a strong track
record of quality and service, primarily targeting Public Sector
and Commercial end users and the acquisition will expand Marshalls'
product range into below ground drainage. We expect the business to
trade, initially as Marshalls CPM, within the wider Marshalls
Group."
Background
Marshalls manufactures and distributes hard landscaping products
(concrete and natural stone paving), minerals including aggregates,
ready mix mortar and street furniture. In the year ended 31
December 2016 the Group reported revenue of GBP396.9m and profit
before tax of GBP46.0m. It has manufacturing sites in the UK and
Belgium, and overseas offices in the US, Dubai and China. It
employs around 2,200 people.
CPM was established in 2004 and reported revenue of GBP51.2m and
profit before tax of GBP4.6m in the financial year ended 31
December 2016. It operates from two manufacturing sites at Mells,
in Somerset, and Pollington, near Goole in East Yorkshire, with
ancillary offices in the Midlands and Scotland, employing around
350 people. CPM manufactures and sells concrete pipes, containment
and inspection chambers, manhole covers, retaining walls and other
bespoke industrial concrete products for the construction sector,
including new housebuilding and major infrastructure projects such
as Hinkley Point A, HS2 and A14 Cambridge. CPM reported gross
assets of GBP33.0m as at 31 December 2016.
The Transaction
Under the terms of the acquisition, Marshalls Mono Limited (a
wholly owned subsidiary of Marshalls plc) has agreed to acquire
100% of the issued share capital of CPM Group Limited. The selling
shareholders comprise the former directors of CPM Group Limited
and/or the trustees of their family pension schemes. The
consideration for the shares is GBP38.3m payable in cash, subject
to any adjustment for specified changes in working capital. The
acquisition will be funded from existing Group facilities.
The acquisition of CPM is expected to be earnings enhancing in
its first full year after completion.
Mike Stacey, former Managing Director of CPM, will remain with
the business and will join Marshalls' senior management team,
reporting to Martyn Coffey.
The information contained within this Announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this Announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
Conference Call
There will be a conference call for analysts and investors today
at 7.30am with a telephone dial in facility of +44 333 300 0804,
access code 853 989 59#. There will also be a playback facility
available for analysts and investors who are unable to dial in +44
(0) 333 300 0819, access code 301 207 810#. A Marshalls'
Presentation will be available for analysts and investors who are
unable to dial in. The presentation can be viewed on Marshalls'
website at www.marshalls.co.uk.
Enquiries:
Martyn Coffey Chief Executive Marshalls plc 01422 314777
Jack Clarke Group Finance Director Marshalls plc 01422 314777
Andrew Jacques MHP Communications 020 3128 8540
Forward-Looking Statements:
Any statements in this release, to the extent that they are
forward-looking, are subject to risk factors associated with,
amongst other things, the economic and business circumstances
occurring from time to time in the markets in which Marshalls
operates. It is believed that the expectations reflected in these
statements are reasonable but they may be affected by a wide range
of variables which could cause actual results to differ materially
from those currently anticipated. More information about the
factors that may affect Marshalls' performance is contained in the
Annual Report to shareholders for the year ended 31 December
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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