Concrete and stone manufacturer Marshalls is in line to buy the roofing specialist Marley for £535m.
The acquisition will be finalised if approved by a shareholder vote on 28 April.
Yorkshire-based Marshalls said the move to acquire the roofing specialist was part of the firm’s strategy to become the UK’s leading manufacturer of built-environment products.
Marley claims to be the UK’s largest manufacturer of roofing tiles, with a 21 per cent market share. In addition to tiling, it also works in aligned areas such as solar power and decking. The firm’s revenue was £120.7m in 2020, a year in which sales were affected by the pandemic. In 2019, Marley turned over £143.5m.
The firm has been owned by private equity group Inflexion since 2019. The investors said that if the deal went through, it would be selling Marley at a return of 3.5 times its initial investment.
The deal in the works is part stock, part cash. Of the £535m, Marshalls said it has financed £187m by selling shares, while £184m will be borrowed. A certain number of shares will also be given to Inflexion.
Marshalls chief executive Martyn Coffey described Marley as a “highly profitable business” and a “strong cultural fit” for the buyer’s company.
Inflexion managing partner Simon Turner said: “Marley is a well-managed business which provides a first-class product. The quality of its offering is highlighted by its resilience, with profits consistently growing since our investment despite the headwinds of Brexit and the pandemic. We would like to thank the whole team for their hard work and commitment. We are confident that the business will continue to go from strength to strength.”
In September 2021, Marley’s owners had announced that the business would potentially be floated on the stock market, with takeover targets also identified to grow its offering.