TIDMBRCK
RNS Number : 3427T
Brickability Group PLC
24 November 2021
Brickability Group PLC
LEI: 213800SK28MWXB3K3P26
24 November 2021
Brickability Group plc
("Brickability" or "the Group")
Brickability Group Acquires HBS NE Limited
Brickability Group plc (AIM: BRCK), the leading construction
materials distributor, is pleased to announce the acquisition of
HBS NE Limited ("HBS NE") and its trading names HBS New Energies
and UPOWA, for a consideration of GBP5.5 million.
HBS NE marks Brickability's first acquisition in the renewable
energy products sector and the 13(th) strategic acquisition by the
Group in the last three years. The acquisition comes as
Brickability seeks to broaden its offering for customers and, also
importantly, focus on its own sustainability commitments across its
divisions.
Decarbonisation of the built environment is driving significant
new opportunity in Brickability's sector, with companies needing to
commit to their own emission reductions while supporting the
transition to net-zero of buildings and the broader supply chain.
Cost efficient energy solutions are set to play a key role in
supporting the built environment and housebuilding industry in
meeting the changing Building Regulations landscape, as well as the
UK Government's recently announced deadline for UK listed companies
to publish their pathway to net-zero by 2030, in line with the UK
Government's 2050 net-zero target.
Founded in 2008, HBS NE is a market-leading renewable energy
expert, specialising in the design, supply, installation and
maintenance of solar PV, battery storage and electric vehicle
charging technologies. With extensive cross-sector installation
experience and technical expertise, HBS NE has built an unrivalled
track record in the housebuilding, construction, commercial and
industrial and public sectors, offering cost-effective, easy to
install, energy saving and scalable technologies that simplify the
construction of sustainable, zero-carbon homes and buildings.
Through its product brand UPOWA, HBS NE provides a single source
of sustainable technology services and products to meet the needs
of the new build market. Working in close collaboration with its
partners, UPOWA supplies specialised products tailored for housing
developers to ensure they achieve compliance with Part L, Part S
and the Future Homes Standard in the most efficient and affordable
way, as well as strengthening developer supply chains to meet
demand. To date, UPOWA has been specified on over 15,000 properties
nationwide and currently works with 16 of the Top 25 UK developers
including, Barratt Developments, Vistry Group and Taylor
Wimpey.
For the year ended 31 March 2021, HBS NE reported unaudited
revenue of GBP8.5 million and normalised EBITDA of approximately
GBP1.1 million.
The consideration is being satisfied by an initial payment of
GBP3.3 million and deferred consideration of GBP2.2 million payable
in cash over the next three years (the "Performance Period"),
subject to adjustments to deferred consideration payments for
performance against target performance criteria during the
Performance Period and for any outperformance of targets during the
two years thereafter. The acquisition will be funded from the
Group's existing resources and is expected to be immediately
earnings accretive post completion.
John Richards, Chairman, Brickability Group plc, said:
"At Brickability we have continued to invest to ensure we remain
at the forefront of the industry.
"We strive to respond to the growing demands and requirements of
our customers, by expanding our offering both organically and,
through the acquisition of complementary businesses with a shared
ethos.
"The renewable energy product sector is an area we have been
looking to move into for some time as we focus not only on helping
our customers address carbon reduction, but also on our own
commitments and responsibility to implement sustainable
solutions.
"This acquisition marks another important milestone for
Brickability and we believe it will deliver significant value for
our shareholders as we continue to enhance and diversify the
business."
Alan Simpson, CEO, Brickability Group plc, said:
"We are delighted to announce the acquisition of HBS NE.
"As a market leader with a proven track record, we believe the
acquisition of HBS NE will further strengthen our strategic
positioning within the wider market and enable us to expand into a
new product segment.
"We are excited about the opportunities for the business and
look forward to welcoming and working alongside HBS NE's management
and team of experts. Our new colleagues will help us to accelerate
growth and product development, whilst also evaluating how we can
implement its solutions across our existing divisions and
throughout our supply chain."
James Bull, Founder and Managing Director HBS NE, said:
"I am extremely proud of what we have achieved and the success
of HBS NE since it was founded 13 years ago.
"Whilst we have continued to grow organically, we firmly believe
that this transaction marks a significant and exciting new chapter
for the business.
"Brickability's significant network of long-standing
relationships and distribution channels offers HBS NE the
opportunity and capacity to scale and develop our national service
and product offering more rapidly, further supporting the growing
needs of our customers, as requirements within the housebuilding
and construction sector continue to evolve."
ENDS
For further information please contact:
Brickability Group plc via Montfort Communications
John Richards, Chairman
Alan Simpson, CEO
Mike Gant, CFO
Cenkos Securities plc (Nominated adviser
and broker)
Ben Jeynes, Max Gould (Corporate Finance)
Julian Morse, Alex Pollen (Sales) +44 (0) 20 7397 8900
Montfort Communications
James Olley
Georgia Colkin +44 (0) 203 514 0897
About Brickability
Brickability is a leading construction materials distributor,
serving customers across the UK and Europe for over 36 years
through its national and local networks. The company supplies over
500M bricks annually and has 41 locations across the country with
over 500 employees.
Across its 3 divisions the Group supplies bricks, roofing,
timber, cladding, heating, flooring, doors and windows to meet
demand from both housebuilders and contractors.
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