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News » UK » Michelmersh takes over Carlton Brick » published 26 Jun 2017

Michelmersh takes over Carlton Brick

Stock-market listed brickmaker Michelmersh has bought out Barnsley-based Carlton Main Brickworks for £31.2m.

Carlton bricks Above: Carlton bricks

Carlton Main Brickworks is expected to increase Michelmersh's output by 40% to more than 100 million bricks a year.

Carlton is a regional brick manufacturer, operating from a 93-acre site brickwork in Barnsley. The factory dates back to the 1880s and currently produces up to 37 million wirecut bricks a year.

Michelmersh has bought Carlton for a gross consideration of up to £38.4m, which includes Carlton’s £7.2m cash in the bank.  Net prices is therefore £31.2m.

For the year to 31st March 2016, Carlton generated turnover of £13.1m, pre-tax profit of £2.6m and adjusted EBITDA of £5.6m after adding back directors' emoluments.

Michelmersh said that Carlton would bring new customers and a well-regarded RMI-focused product line.

Carlton has been owned by the Stephenson family since the 1970s and the vendors comprise Oliver and Matthew Stephenson and Derek and John Wilson (deceased). Oliver Stephenson, Carlton's chairman and major shareholder, will cease to be employed by Carlton but will support the integration of the business into the enlarged group through a two-year consultancy agreement with Michelmersh.

Michelmersh plans for Carlton to continue manufacturing its range of products. Managing director Pat Furr is retiring from the business at the end of 2017. The sales staff at Carlton will continue to serve the existing customer base but over time will be integrated into the Michelmersh national sale structure to encourage cross selling of products and widening of the geographical presence of the enlarged group.

 

 

MPU

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This article was published on 26 Jun 2017 (last updated on 26 Jun 2017).

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