Construction materials distributor Brickability Group plc has announced the conditional acquisition of Taylor Maxwell Group, one of the UK’s leading suppliers of timber and non-combustible cladding, for a consideration of up to £63 million.
John Richards, Chairman of Brickability, stated that the acquisition of Taylor Maxwell will bolster Brickability’s “leading position in UK brick distribution” whilst “offering cost and revenue synergies” and being “transformational in terms of the group’s scale and relevance in the wider materials supply industry.”
Indeed, a company statement reports that the acquisition is expected to be “significantly earnings accretive on a per share basis and puts the Group on track to reach £500 million of annual revenues in the near term” by broadening its product offering and its “market position in key products (which) provides an opportunity for future organic growth”. Furthermore, the Group “believes there are margin enhancement opportunities available within Taylor Maxwell, with a focus on imports and the Repairs Maintenance & Improvement (RMI) industry”.
Noting that the acquisition of Taylor Maxwell is the 11th strategically significant acquisition made by Brickability since 2018, John said: “As Brickability continues to grow, this acquisition marks a significant expansion in the range of solutions we can deliver for our growing client base and represents a significant value-add for our Shareholders. The team continues to identify and evaluate opportunities as we continue to deliver the IPO promise, retaining focus on diversification and expansion.
“Taylor Maxwell has been providing façade and timber products to the construction industry for over 60 years. 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 added: “The Acquisition has been well supported by our existing shareholder base, and the oversubscribed Placing has benefited Brickability by welcoming a range of new institutional shareholders to the Brickability register.”
Alan Simpson, Chief Executive Officer of Brickability, commented: “Taylor Maxwell is a business we have earmarked for acquisition since IPO as we believe the union will bring significant short and long-term benefits to both companies and customers. Access to Taylor Maxwell’s longstanding relationships, distribution channels and local knowledge will greatly improve Brickability’s access to the UK marketplace while also delivering procurement, revenue and structural synergies.”
Taylor Maxwell’s Managing Director Martin Rudge 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.”
Supplying a select range of building materials to house builders and contractors, the Group which Brickability now heads was founded in 1984 in South Wales and has since grown organically and through acquisitions to have a nationwide presence, with 25 sites and sales offices throughout the UK. The Group currently employs approximately 285 people throughout the UK and focuses its business on three main areas: Bricks & Building Materials, Roofing, and Heating, Plumbing & Joinery.
Brickability reports that it supplies over 300 million bricks annually and its broader range of products currently also includes blocks, rain screen cladding systems, architectural masonry, paving, roof tiles and slates.
Taylor Maxwell can trace its origins back to 1959 and the business established by R. Taylor and Eric Mclean Maxwell. Headquartered in Clifton, UK, the company is a leading supplier of timber and noncombustible cladding to the construction industry. It reports “key relationships” with global manufacturers, and holds key supply chain agreements with building contractors, developers, architects and also merchants.
Operating from from 16 office and showroom locations across the UK and with a product range covering brick, timber, non-combustible cladding, flooring, masonry, decking, offsite solutions and engineered wood, key customers are said to include Vistry Group, Lovell Homes, Bloor Homes, MKM Building Supplies and AVS Fencing and Landscaping Supplies.
