Michelmersh buys Belgian brickmaker Floren
Specialist brick manufacturer Michelmersh has acquired the entire issued share capital of Floren & Cie, an established clay brick manufacturing business - for a maximum consideration of €9.9m, it announced on Monday.
The AIM-traded firm said the acquisition was expected to be immediately earnings enhancing for the group.
Floren has been operating out of Sint Lenaarts in Belgium, since 1896, and in 2018, it manufactured 19.5 million premium wire cut bricks, which were predominantly sold within the Belgian and UK markets, generating unaudited revenues of €5.7m and EBITDA of €1.75m.
The company said the strategic acquisition would enhance its product portfolio, significantly increase its overall output and provide a foothold in new European markets for Michelmersh.
Michelmersh also announced that it was seeking to raise up to £5m through a placing of new ordinary shares, although it confirmed completion of the acquisition was not conditional on the placing.
The acquisition was being funded from the existing debt facilities available to the group, as well as the placing.
“The board considers Floren to be an excellent strategic asset which gives Michelmersh access to the wider Benelux and German markets and adds significant value to the group,” the Michelmersh board said in its statement.
“The acquisition is also in line with the company's premium centric market strategy, given Floren's high quality product range and desirable aesthetics it is able to help building designers and architects create.
“The group welcomes the Floren team to the business and looks forward to building on the significant success already achieved by its dedicated team in Antwerp.”