Marshalls to buy roofing specialist Marley for £535m

Stone and concrete landscape products maker Marshalls said on Wednesday that it has agreed to buy roofing specialist Marley from private equity firm Inflexion for £535m, with part of the consideration to be funded through a share placing.

Marshalls said Marley is a leader in the manufacture and supply of pitched roof systems to the construction market. It said the deal represents a compelling strategic fit and will accelerate its five year-strategy to become the UK's leading manufacturer of products for the built environment.

The acquisition extends Marshalls into the pitched roofing market and adds a "complementary and extensive" range of products across the full roof system including concrete and clay roof tiles, roof fittings, timber battens, solar panels and roofing accessories.

Marshalls said the deal will enhance its exposure to the UK construction market and, in particular, to the "cyclically resilient and growing" repair, maintenance and improvement (RMI) end market.

The transaction is expected to be double-digit accretive to earnings per share in the first full financial year post completion.

The consideration will be financed through £371m in cash, which will be from a combination of around £187m from a firm placing and open offer and new debt financing, and 24,092,457 consideration shares expected to be issued to the sellers.

Chief executive Martyn Coffey said: "Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business."