Fabspeed specialises in brick slips, prefabricated brick-clad chimneys and arches, and plastic building sections that look like brick.
The £6.25m initial purchase price represents 5.3x Fabspeed's historic profits before tax, depreciation and amortisation (Ebitda) of £1.2m on a cash free, debt free basis. A further
£2m is payable in cash subject to results over the next two years.
In 2021 Fabspeed made a pre-tax profit before tax of £600,000 and at year-end had gross assets of £5.2 million.
Michelmersh joint chief executive Frank Hanna said: "Fabspeed is a great addition to our business, enabling us to create a leading business in both clay and pre-fabricated products.
"With cross selling and distribution synergies to unlock over the coming periods, we expect to enhance what is already an earnings accretive deal to deliver further value for our shareholders as we integrate both businesses."