Telford brick maker's owner in £31m acquisition
The owner of a Telford brick maker has expanded with a £31.2 million acquisition.
Michelmersh, which owns Trench-based Blockley's, has expanded its portfolio with the takeover of Carlton Main Brickworks in Yorkshire.
Carlton operates from a 93-acre site in Barnsley which was established in the 1880s, and which currently manufactures up to 37 million wirecut bricks a year annum.
The deal has seen £38.4 million paid for the business, but that includes £7.2 million of cash balances at Carlton which brings the overall cost of the deal down to £31.2 million.
Carlton reported turnover of £13.1 million and EBITDA of £5.6 million last year. It is expected to increase Michelmersh's output to over 100 million bricks a year.
Michelmersh said in a statement: "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.
"Furthermore, the addition of Carlton will broaden an already very strong and loyal customer base, giving access to new regional markets with cross sales opportunities and product synergies.
"Carlton also brings with it a popular and highly regarded RMI focused product line. This itself will give the enlarged group the ability to strengthen its market offering whilst greatly improving efficiency and output per capita."
Michelmersh Brick Holdings now has a group of six brands: Blockleys, Carlton, Charnwood, Freshfield Lane, Michelmersh and Hathern Terra Cotta.
