.png)
The deal sees Sheffield-based SIG acquire St Neots-based MCP for an initial cash payment of £28m, with a further payment of up to £6.7m paid subject to MCP’s performance in the period ending December 31, 2023, alongside a deferred payment of £1.8m within 24 months.
In the year ended September 30, 2021, MCP reported revenue of £46.7m and operating profit of £4.4m.
In a statement, SIG said acquiring MCP will broaden its UK offering in "high-performance construction accessories and fixings", and is a strong fit to its business model to deliver "superior service through deep supplier partnerships and specialist expertise.”
It added that there are "significant" growth opportunities across the combined business, driven by SIG's supply network and product range together with MCP's global supply chain and supplier agreements.
The acquisition is expected by be immediately accretive to SIG's underlying earnings per share as well as its operating margins.
Commenting on the deal, SIG’s CEO, Steve Francis, said: "Miers is a highly attractive specialist business with a strong brand, a great reputation for quality service, and technical sector specialism and expertise [and] illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term.”
Got a story? Email news@theconstructionindex.co.uk
