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SIG PLC on Monday said it has bought Miers Construction Products Ltd for up to £36.5 million, providing a ‘significant’ growth opportunity for the company.
SIG is a Sheffield-based supplier of insulation, roofing, commercial interiors and construction products, whilst Miers is a St Neots, Cambridgeshire-based supplier of specialist construction materials.
SIG said it will acquire Miers for an initial cash payment of £28 million on a debt-free and cash-free basis. A further contingent cash payment of up to £6.7 million will be paid, subject to its performance in the period ending December 31, 2023, alongside a deferred payment of £1.8 million within 24 months.
In the year ended September 30, 2021, Miers reported revenue of £46.7 million and operating profit of £4.4 million.
SIG said that acquiring Miers will broaden its UK offering in ‘high-performance construction accessories and fixings’, and is a strong fit to its business model to deliver ‘superior service through deep supplier partnerships and specialist expertise.’
It added that there is ‘significant’ growth opportunities across the combined business, driven by SIG's supply network and product range together with Miers's global supply chain and supplier agreements.
The acquisition is expected by be immediately accretive to SIG's underlying earnings per share as well as its operating margins.
Chief Executive Officer Steve Francis said: ‘Miers is a highly attractive specialist business with a strong brand, a great reputation for quality service, and technical sector specialism and expertise.
‘Miers illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term,’ Francis added.
Shares in SIG were up 1.0% to 34.13 pence each in London on Monday morning.
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