Barnsley brick maker acquired in £31.2 deal

Carlton Main Brickworks, the Barnsley-based brick manufacturer, has been acquired by Michelmersh Brick in a £31.2m deal.

The acquisition is expected to be significantly earnings enhancing for Michelmersh.

Carlton operates from a 93-acre site brickwork in Barnsley, which currently manufactures up to 37 million wirecut bricks per annum.

Michelmersh has bought Carlton for a gross consideration of up to £38.4m, which includes Carlton’s cash balances of £7.2m. As a result, the net price is £31.2m.

For the 12 months ending 31st March 2016, Carlton reported a turnover of £13.1m and a pre-tax profit of £2.62m.

Completion of the acquisition means that Michelmersh’s annual output of bricks will increase to 100 million.

The Stephenson family has owned Carlton since the 1970’s 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.

Pat Furr, Carlton’s current managing director, is retiring from the business at the end of 2017 but will help with the business transfer as the current manufacturing team fall into the Group operating management structure.

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