Michelmerse acquires prefab firm Fabspeed for £6.25m

Brick manufacturer Michelmerse has bought Fabspeed, a specialist in prefabricated building products, for an initial £6.25m.

The acquisition is designed to strengthen the company’s position in the market for offsite and modern methods of construction products.

Fabspeed operates from two facilities in West Yorkshire and one in Oxfordshire, supplying prefabricated products such as chimneys and arches, as well as brick cladding systems.

Michelmerse said the move was an important step in its strategy to strengthen its position in the specialist brick manufacturing market.

Combining Fabspeed with Michelmersh’s existing clay-product manufacturing business would create a stronger combined group in clay and associated prefabricated products, it said.

The enlarged group would benefit from Fabspeed’s complementary customer base and distribution channels to offer a broader product portfolio and enhanced routes to market, the firm added.

“Fabspeed is a great addition to our business, enabling us to create a leading business in both clay and pre-fabricated products,” said Frank Hanna, joint chief executive officer.

“With cross selling and distribution synergies to unlock over the coming periods, we expect to enhance what is already an earnings accretive deal to deliver further value for our shareholders as we integrate both businesses.”

Fabspeed said its portfolio of prefabricated brick products would add diversity to Michelmerse’s existing premium range, making it the specialist one-stop manufacturer for all brick requirements.

“This opportunity enhances our nationwide coverage by integrating fabrication facilities within the existing brick manufacturing sites, adding capacity, flexibility and growth,” said directors Chris Penston and Mark Richards.

News of the acquisition came as Michelmerse said it anticipated revenue and profit to be ahead of market expectations for the twelve months ending 31 December.

In a pre-close trading update, it said that despite continuing to operate in a challenging environment, the group was managing its supply chain and energy costs in line with management expectations.

“The trading performance of the group has continued to be positive into the final quarter of the financial year and we continue to see robust demand in our end markets,” it said.

Full year results are due to be published in March.

Leave a comment