Marshalls plc completes £38m acquisition of concrete manufacturer

Marshalls plc, the Elland-based hard landscaping manufacturer, has acquired CPM Group Limited, a pre-cast concrete manufacturer specialising in underground water management solutions, for £38.3m.

Marshalls manufactures and distributes hard landscaping products, minerals including aggregates, ready mix mortar and street furniture.

In the year ended 31st December 2016, the company reported revenues of £396.9m and a pre-tax profit of £46.0m.

Marshalls, which has manufacturing sites in the UK and Belgium and overseas offices in the US, Dubai and China, employs around 2,200 people.

Established in 2004, CPM reported revenues of £51.2m and pre-tax profit of £4.6m in the financial year ended 31st December 2016. The firm operates from two manufacturing sites at Mells, in Somerset, and Pollington, near Goole in East Yorkshire.

CPM manufactures and sells concrete pipes, containment and inspection chambers, manhole covers, retaining walls and other bespoke industrial concrete products for the construction sector.

Under the terms of the acquisition, Marshalls Mono Limited (a wholly owned subsidiary of Marshalls plc) has agreed to acquire 100% of CPM Group Limited.

The acquisition of CPM is expected to be earnings enhancing in its first full year after completion.

Mike Stacey, former managing director of CPM, will remain with the business and join Marshalls’ senior management team, reporting to Martyn Coffey.

Martyn Coffey, chief executive of Marshalls, said: “Marshalls’ 2020 Strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on the identified growth areas of water management, security and mineral products.

“The acquisition of CPM represents a significant step towards achieving one of our strategic goals. CPM is a profitable business with a strong track record of quality and service, primarily targeting Public Sector and Commercial end users and the acquisition will expand Marshalls’ product range into below ground drainage.

“We expect the business to trade, initially as Marshalls CPM, within the wider Marshalls Group.”

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