Brickability to buy Taylor Maxwell for up to £63 million
Brickability Group plans to buy Taylor Maxwell, the timber and non-combustible cladding company, for up to £63 million.
It would mark the group's 11th purchase since 2018, according to Chairman John Richards, who cited Taylor Maxwell's track record in providing façade and timber products to the construction industry for over 60 years as a "significant value add" for its shareholders.
"The firm operates from 16 regional locations across the UK, with minimal overlap against Brickability’s existing client base. Over the years, Taylor Maxwell have acquired a wealth of local market knowledge, enabling them to build strong professional relationships with a diverse range of key manufacturers," he said.
"The acquisition of Taylor Maxwell will bolster Brickability’s leading position in UK brick distribution; offering cost and revenue synergies while being transformational in terms of the group’s scale and relevance in the wider materials supply industry."
The company has conditionally raised £55 million (before fees and expenses) by way of a placing of 57,894,737 new ordinary shares of one penny each at a price of 95 pence per share with new and existing institutional investors.
In addition, in order to meet market demand, certain selling shareholders have also conditionally raised a further £38 million through the sale of 40,000,000 existing Ordinary Shares at the Issue Price.
Martin Rudge, Managing Director, Taylor Maxwell, said Taylor Maxwell's management team view the transaction as an exciting new chapter in the history of the business, one that they feel will benefit its employees, customers and suppliers alike.
“We are very proud of what has been achieved over the last sixty years and how the business has developed into the company it is today. Growth in recent times has been organic and this transaction is seen as a great opportunity to develop the business further as part of a larger organisation," he said.
Both companies have been in dynamic mood as they react to legislative and commercial changes following the pandemic. The timber sector is wrestling with soaring prices, with the the US Random Length Timber index surpassing $1,600 this month, up from $326 this time last year.
Forum Tiles is Brickability Group’s latest venture into Ceramic Tile supply. This new start-up business has been formed to offer a full range of porcelain, and ceramic tile solutions direct to the developer market (click here). The group also bought McCann Roofing Products for £2.75 million last year.
Taylor Maxwell recently announced the acquisition of SBS Cladding, a distributor and fabricator of decorative rainscreen cladding systems (click here).
