Materials retailer Brickability has bought Scotland-based cladding and repair specialist Topek in a deal worth up to £45m.
The acquisition is Brickability’s 12th following its public listing in 2019, and the company follows a strategy to “broaden and deepen” its portfolio.
The deal consists of an initial £27.3m, followed by up to £17.7m over the next three years subject to performance.
Brickability said the deal would “significantly increase the group’s presence in the cladding repair market”.
The firm added that Topek’s range of services will “complement” its existing cladding portfolio, which includes Taylor Maxwell Cladding, SBS Cladding and Architectural Façades.
The acquisition means that Brickability will now offer a full range of cladding capabilities, including design, manufacture, supply and installation.
Topek, established in 1981, installs cladding and rain protection systems for a blue chip customer base. It generated revenue of £21.2m in the year to 31 August 2023.
In a trading update yesterday, Brickability said its diversified strategy provided “resilience… in the face of a challenging UK housebuilding market”. Its revenue for the six months to September 30 this year is expected to be around £324m, compared with £352.7m in the same period last year.
Brickability chairman John Richards said the acquisition, Brickability’s second largest to date, was a “very exciting” part of its diversification strategy.
“The acquisition of Taylor Maxwell in 2021 provided a significant increase in exposure to the public and commercial end markets, and the addition of Topek further increases our presence in these markets,” said Richards. “We believe this acquisition will deliver significant value to our shareholders.”
Brickability chief executive Alan Simpson said: “We have seen in our brick and building division how our supply of cladding products has been growing.
“With Topek, which will be based in our contracting division, we will build on this and expand our existing range of products and services in supply and installation as we continue to pursue our diversified multi-company strategy.”
Brickability’s revenue in the year to the end of March 2023 was £681.1m, up 31% on the previous year.
The company said its revenue had increased by around £500m since its 2019 IPO, with the proportion of the company’s revenue from bricks falling from 80 to 60 per cent.
