|
Marshalls PLC said on Wednesday it entered into a conditional agreement to acquire pitched roof system manufacturer Marley Group PLC for £535 million.
The Elland, England-based landscaping products company called the acquisition a ‘compelling strategic fit’ which will accelerate its five-year plan to become the UK's leading manufacturer of products for the built environment.
It expects the acquisition to be double-digit earnings per share accretive in the first full year after completion.
The £535 million transaction is on a cash free and debt free basis. £371 million will be financed by the combination of a £187 million placing and open offer as well as the issue of 24.1 million in consideration shares - worth around £164 million - to unnamed management sellers.
Peel Hunt and Numis Securities are acting as joint bookrunners for the placing.
The deal is expected to be completed on April 29, following the capital raise and general meeting.
Chief Executive Martyn Coffey said: ‘Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business.’
Shares in Marshalls closed up 0.8% at 692.50 pence in London on Wednesday.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
