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Alumasc Group PLC on Tuesday said that it has agreed to acquire ARP Group, a manufacturer and distributor of specialist metal rainwater and architectural aluminium goods. Alumasc is a Kettering, England-based supplier of building and engineering products. ARP Group comprises ARP Group Holdings Ltd and its subsidiary Aluminium Roofline Products Ltd; together with Rainwater Online Holdings Ltd and its subsidiaries Envelope Solutions Ltd and Cast Iron Superstore Ltd. The acquisition is for a maximum cash consideration of £10.0 million on a cash and debt free basis. This comprises an initial £8.5 million, payable at completion, with additional consideration capped at £1.5 million. The latter is subject to ARP’s performance over the two years ending November 2024. ARP is expected to be immediately accretive to underlying earnings and will be funded from current cash and debt facilities. The acquisition remains conditional upon approval from the UK Competition and Markets Authority. The directors expect this process to conclude, and the acquisition to complete, within three months of today’s date. ‘We are delighted to welcome ARP, along with all our new colleagues to the Alumasc Group. This acquisition aligns with our strategy of accelerating our organic growth with complementary bolt-on acquisitions. ARP will broaden the group’s existing product offerings, and augment the routes to market for both businesses,’ said Chief Executive Paul Hooper. Alumasc shares were trading 2.2% lower at 163.50 pence each in London on Tuesday afternoon. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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