SIG, the Sheffield-headquartered supplier of specialist insulation and sustainable building products, has acquired Miers Construction Products Limited (MCP) for an initial cash consideration of £28m.
A further contingent cash payment of up to £6.7m will be payable, subject to the performance of the business during the period ending on 31 December 2023, together with a deferred cash payment of £1.8m, payable in 24 months.
MCP was acquired from two founding shareholders and four members of MCP’s management team. The existing management team are remaining with the business and MCP will continue to trade under its existing brand.
Steve Francis, Chief Executive Officer of SIG, said: “We are delighted to announce the acquisition of MCP, which demonstrates delivery of SIG’s Group strategy to grow both organically and through carefully targeted value-enhancing acquisitions.
“MCP is a highly attractive specialist business with a strong brand, a great reputation for quality service, and technical sector specialism and expertise. These key elements have created a business that has the ability to grow sustainably ahead of the market.
“MCP illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term. We welcome MCP’s knowledgeable and committed management team and employees to SIG and look forward to working with them.”
Established in 2010, MCP is a provider of specialist construction products to specialist sub-contractors, builders and main contractors.
For the year ended 30 September 2021, MCP reported revenue of £46.7m and operating profit of £4.4m. The business has continued to perform strongly in the current year, with (unaudited) revenue of £55.5 million and adjusted EBITDA of £5.1m for the 12 month period to 31 May 2022.
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