Brickability buys ET Clay Products in £11.6m deal

Construction materials distributor Brickability has acquired ET Clay Products, it announced on Monday, for £11.6m.

The AIM-traded firm said the acquisition was made by buying 100% of the share capital of ET Clay Products and Heritage Clay Tiles.

Established more than 25 years ago, Brickability described ET Clay Products as a “specialist supplier” of UK and imported clay facing bricks and handmade and handcrafted clay roof tiles.

Operating out of three yards, the businesses would bring new customers to the group, particularly in the merchants channel, the directors explained.

In the year ended 30 July, ET Clay Products generated unaudited revenues of £44.3m and adjusted EBITDA of around £3m.

The consideration was satisfied by an initial cash payment of £8.1m, and deferred consideration of £3.5m payable in cash over the next three years, subject to adjustments for performance against targets.

Brickability said the consideration was being satisfied in cash, funded from its existing cash resources, adding that it was expected to be “immediately earnings-accretive” post completion.

“The acquisition of ET Clay Products provides another important step in the growth of our import division by further expanding the supply base of the group through new access to a range of overseas manufacturers,” said chief executive officer Alan Simpson.

At 1108 BST, shares in Brickability were up 1.35% at 75p.

Reporting by Josh White at Sharecast.com.