LONDON, UK: Brickability Group (AIM: BRCK) has completed the acquisition of Topek Southern Limited (TSL) for a consideration of up to £48m through the acquisition of the entire issued share capital, business and operations of TSL Assets Limited.
Established in 2009, Hampshire-based TSL delivers façade systems, fire remediation, roofing, and curtain wall solutions for both live and occupied sites. Topek Southern Limited acts as a Principal Contractor for commercial and industrial projects across the UK. Its specialist portfolio includes hotels, student accommodation, office buildings and sports stadiums.
TSL’s operations in the South of England expand the Group’s existing reach via the recent acquisition of Group Topek Holdings Limited and further complement the Group’s presence in the cladding remediation market, in doing so creating a full-service specialist cladding installation and remediation contracting business with national presence for the Group.
In the 12 months to 31 August 2023, Topek Southern Limited generated audited revenue of £38.7m and PBT of £8.1m.
It is expected that the acquisition will be earnings accretive in the first full year and the Acquisition marks another step in the continuing diversification of Brickability since IPO.
Since joining the public markets in 2019 Brickability has now acquired 14 businesses, pursuing a diversified multi-business strategy to broaden and deepen the Group’s product portfolio and geographic coverage.
The consideration payable for the acquisition comprises an initial cash consideration of £17.3m payable on completion, a further £10.0m satisfied through the issue of 17,094,017 new ordinary shares of in the capital of the company at an effective issue price of 58.5 pence per ordinary share; and up to £20.7m of deferred contingent consideration that, subject to adjustments, is payable for performance against target performance criteria over the next three years.
John Richards, Chairman, Brickability, 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.
I, and the Brickability Group, welcome our new colleagues and look forward to delivering value for all stakeholders.”
Alan Simpson, CEO, 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.”
Dexter Copeland, Managing Director, TSL, commented: “We are excited to be joining the Brickability Group and with it beginning a new chapter in the history of the business. This is a great opportunity to develop the business further as part of a larger organisation.”