Kettering-based building and engineering products supplier Alumasc Group PLC has announced its agreement to acquire ARP Group, a leading manufacturer and distributor of specialist metal rainwater and architectural aluminium goods. ARP Group consists of ARP Group Holdings Ltd and its subsidiary Aluminium Roofline Products Ltd, along with Rainwater Online Holdings Ltd and its subsidiaries Envelope Solutions Ltd and Cast Iron Superstore Ltd.
The acquisition will be made for a maximum cash consideration of GBP 10.0 million on a cash and debt-free basis. It includes an initial payment of GBP 8.5 million, payable upon completion, with an additional consideration capped at GBP 1.5 million. The latter is contingent on ARP’s performance over the two-year period ending in November 2024.
With the addition of ARP to its portfolio, Alumasc expects an immediate boost to underlying earnings. The acquisition will be funded through the company’s existing cash and debt facilities.
The completion of the acquisition is subject to approval from the UK Competition and Markets Authority, and the directors anticipate finalizing the process within three months from the date of the announcement.
Alumasc Group’s Chief Executive, Paul Hooper, expressed his enthusiasm for the acquisition, stating, “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.”
As of Tuesday afternoon, Alumasc shares were trading at 163.50 pence each in London, representing a 2.2% decrease following the announcement of the acquisition.
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