Deal will push firm’s brick output to more than 100 million a year
Brick manufacturer Michelmersh has acquired South Yorkshire-based rival Carlton Main Brickworks for £31.1m.
Based at Grimethorpe, near Barnsley, Carlton reported turnover of £13.1m and a pre-tax profit of £2.6m for the 12 months to 31 March 2016.
The brick maker, which dates back to the 1880s, operates from a 38ha site and manufactures up to 37 million bricks a year.
The AIM-listed Michelmersh said Carlton “has a strong product offering that complements the geography and market segment of Michelmersh”.
It added: “Carlton is expected to increase Michelmersh’s output to over 100 million bricks per annum, an increase of over 40%.”
Michelmersh posted a turnover of £30.1m and pre-tax profit of £4.6m in 2016, with sales of 69.4 million bricks.
The firm said: “The acquisition will give Michelmarsh access to new regional markets, provide opportunities for cross selling and product synergies and increase output efficiency. Other operational synergies are expected to benefit the enlarged Group over time.
“The acquisition gives the company the ability to expand its quality product offering in line with our premium-centric core strategy, and consequently will increase the group’s annual output to 100 million bricks.
“The board considers that the acquisition of Carlton is an important strategic step forward in the growth of the Company, adding significant scale, output and earnings to the Group.”