Alumasc Group PLC Acquisition of ARP Group (0220H)
25 Julho 2023 - 3:00AM
UK Regulatory
TIDMALU
RNS Number : 0220H
Alumasc Group PLC
25 July 2023
25 July 2023
The Alumasc Group plc
("Alumasc" the "Group", or the "Company")
Acquisition of ARP Group
Accelerating the growth strategy through M&A
Alumasc, the sustainable building products, systems and
solutions group, is pleased to announce that it has agreed, subject
to regulatory approval, to acquire the entire issued share capital
of ARP Group(1) ("ARP"), a manufacturer and distributor of
specialist metal rainwater and architectural aluminium goods, for a
maximum cash consideration of GBP10.0m on a cash and debt free
basis, and subject to adjustments for normalised working capital
(the "Acquisition"). The consideration comprises an initial
GBP8.5m, adjusted for net cash/debt and normalised working capital,
payable at completion; with additional consideration, capped at
GBP1.5m, payable subject to ARP's performance over the two years
ending November 2024.
ARP marks the first acquisition by Alumasc since 2018 and
demonstrates the Group's strategy to supplement organic growth
through earnings accretive acquisitions. ARP shares many qualities
with Alumasc, including strong relationships with contractors which
will complement Alumasc's business model. ARP will broaden the
Group's existing product offerings, and augment the routes to
market and bring attractive scaling opportunities for both
businesses.
Based in Leicester, ARP was established in 1987, and operates
from four facilities totalling over 47,000 square feet, with a team
of over 70 experienced staff. ARP's consolidated unaudited results
for the year ended February 2023 showed revenue of GBP10.8m and
adjusted EBITDA of GBP1.3m. Consolidated net assets were GBP4.5m.
The acquisition multiple based on the initial consideration is
approximately 6.8x, which is expected to reduce to below 5.0x over
the medium term, assuming full payment of the earn out
consideration, and achievement of expected operating synergies.
ARP is expected to be immediately accretive to underlying
earnings and will be funded from current cash and debt facilities.
Following completion of the Acquisition, Alumasc's balance sheet
will remain strong, with 30 June 2023 pro-forma net debt
representing approximately 0.75x EBITDA.
The Acquisition remains conditional upon the UK Competition and
Markets Authority ("CMA") having indicated that it has no further
questions in relation to the Company's submission regarding the
Acquisition, and that it does not intend to make a Phase 2
referral. The Directors expect this process to conclude, and the
Acquisition to complete, within 3 months of today's date. Further
announcements will be made as appropriate.
Paul Hooper, Chief Executive of Alumasc, said: "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."
(1) 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.
For further information, visit the ARP website at
https://www.arp-ltd.com/
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014), as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior
to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations. The person responsible for making this announcement on
behalf of the Company is Helen Ashton, Group Company Secretary.
END
Enquiries:
The Alumasc Group plc
Paul Hooper (Chief Executive) +44 (0)1536 383844
Simon Dray (Group Finance Director)
Peel Hunt (Broker)
Mike Bell +44 (0)207 418 8831
Ed Allsopp
finnCap (Nominated Adviser)
Julian Blunt +44 (0)207 220 0561
Camarco:
Ginny Pulbrook +44 (0)203 757 4992
Rosie Driscoll +44 (0) 203 757 4981
alumasc@camarco.co.uk
LEI: 2138002MV11VKZFJ4359
Notes to Editors:
Alumasc is a UK-based supplier of premium building products,
systems, and solutions. Almost 80% of group sales are driven by
building regulations and specifications (architects and structural
engineers) because of the performance characteristics offered.
The Group has three business segments with strong positions and
brands in their individual markets. The three segments are:
Building Envelope; Water Management; and Housebuilding
Products.
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END
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July 25, 2023 02:00 ET (06:00 GMT)
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