LONDON, UK: Brickability Group plc announced the conditional acquisition of Taylor Maxwell Group (2017) Limited, one of the UK’s leading suppliers of timber and non-combustible cladding to the construction industry, for a consideration of up to £63 million.
In order to finance the Acquisition and to help fund future bolt-on acquisitions, the Company has conditionally raised £55 million by way of a placing of 57,894,737 new ordinary shares of one penny each at a price of 95 pence per share with new and existing institutional investors.
In addition, in order to meet market demand, certain selling shareholders have also conditionally raised a further £38 million through the sale of 40,000,000 existing Ordinary Shares at the Issue Price.
John Richards, Chairman of Brickability, said: “The acquisition of Taylor Maxwell is the 11th strategically significant acquisition made by Brickability since 2018 and is absolutely in line with the strategy we set out at IPO.
“As Brickability continues to grow, this acquisition marks a significant expansion in the range of solutions we can deliver for our growing client base and represents a significant value-add for our Shareholders.
“The team continues to identify and evaluate opportunities as we continue to deliver the IPO promise, retaining focus on diversification and expansion.
“Taylor Maxwell has been providing façade and timber products to the construction industry for over 60 years. The firm operates from 16 regional locations across the UK, with minimal overlap against Brickability’s existing client base. Over the years, Taylor Maxwell have acquired a wealth of local market knowledge, enabling them to build strong professional relationships with a diverse range of key manufacturers.
“The acquisition of Taylor Maxwell will bolster Brickability’s leading position in UK brick distribution; offering cost and revenue synergies while being transformational in terms of the group’s scale and relevance in the wider materials supply industry.
“The Acquisition has been well supported by our existing shareholder base, and the oversubscribed Placing has benefited Brickability by welcoming a range of new institutional shareholders to the Brickability register.”
Alan Simpson, Chief Executive Officer of Brickability, said: “Taylor Maxwell is a business we have earmarked for acquisition since IPO as we believe the union will bring significant short and long-term benefits to both companies and customers.
“Access to Taylor Maxwell’s longstanding relationships, distribution channels and local knowledge will greatly improve Brickability’s access to the UK marketplace while also delivering procurement, revenue and structural synergies.
“We look forward to welcoming the Taylor Maxwell team to the Brickability Group and building an even stronger business in 2021.”
Martin Rudge, Managing Director, Taylor Maxwell, said: “Taylor Maxwell’s management team view the transaction as an exciting new chapter in the history of the business, one that they feel will benefit its employees, customers and suppliers alike.
“We are very proud of what has been achieved over the last sixty years and how the business has developed into the company it is today. Growth in recent times has been organic and this transaction is seen as a great opportunity to develop the business further as part of a larger organisation.”
Brickability is a leading specialist provider of a select range of building materials, to supply solutions to house builders and contractors. The Group which Brickability now heads was founded in 1984 in South Wales and has since grown organically and through acquisitions to have a nationwide presence, with 25 sites and sales offices throughout the UK. Brickability currently employs approximately 285 people throughout the UK.
Brickability focuses its business on three main areas: Bricks & Building Materials, Roofing, and Heating, Plumbing & Joinery. Brickability supplies over 300 million bricks annually and their products currently also includes blocks, rain screen cladding systems, architectural masonry, paving, roof tiles and slates.
The business that is incorporated as Taylor Maxwell was founded in 1959 by R. Taylor and Eric Mclean Maxwell. Headquartered in Clifton, UK, the company is one of the UK’s leading suppliers of timber and non-combustible cladding to the construction industry. Taylor Maxwell has key relationships with global manufacturers, and holds key supply chain agreement with building contractors, developers, architects and timber merchants.
Taylor Maxwell’s products currently include brick, timber, non-combustible cladding, flooring, masonry, decking, offsite solutions and engineered wood. Key customers include Vistry Group, Lovell Homes, Bloor Homes, MKM Building suppliers and AVS Fencing and Landscaping Supplies. Taylor Maxwell operates from 16 office and showroom locations across the UK.
The Acquisition of Taylor Maxwell is expected to be significantly earnings accretive on a per share basis and puts the Group on track to reach £500 million of annual revenues in the near term.
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1 Jun, 4:12 pm GMT+1 · Disclaimer
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