Marshalls plc. Acquisition of Edenhall

Transcription

1 Marshalls plc Acquisitin f Edenhall

2 Acquisitin f Edenhall Strategic backgrund Business verview Market backgrund Prduct range Financial infrmatin Deal structure and acquisitin metrics Funding Find ut mre nline Find us n Facebk MarshallsGrup Fllw us n Fllw us n LinkedIn Marshalls Fllw us n YuTube MarshallsTV

3 Strategic backgrund This is in line with ur stated strategy f expanding int adjacent building prducts related t New Build Husing It is a strategic fcus fr Marshalls and is a key part f ur Grup Strategy Edenhall is a cncrete brick manufacturer capable f prducing a spectrum f clurs, shades and textures t meet any specificatin requirements fr facing bricks and specials The acquisitin will enable us t ffer custmers a brader prduct chice

4 Business verview Edenhall is a leading UK supplier f sustainable cncrete prducts fr the cnstructin industry Manufacturing takes place at a number f sites acrss England, Sctland and Wales and ffers full natinal cverage and distributin The business has apprximately 250 emplyees Edenhall is a prfitable business with a strng track recrd f quality, reliability and service

5 Market backgrund New Build residential is ur biggest segment fr Cmmercial Sales We have strng framewrks with the New Build Husing Sectr, and this wuld fit in with ur existing custmer framewrks and agreements Edenhall has a ftprint in the Suth West that culd take ur Crmwell walling ffer further The cmbinatin f ur ffer and Edenhall will build ur specificatin ability fr bth brands We can leverage ur existing business in Mrtars and Screeds as they sell directly int this sectr als

6 Prduct range Edenhall ffers facing brick clurs in all shades frm white t blue and in a wide variety f textures frm smth t sand-faced and weathered finishes. The ranges include Brder Cllectin (Nrthern / Sctland) Nrthern Traditinal (Nrthern) Cntemprary Cllectin (Natinal) Kingdm Cllectin (Suth Wales) Peakdale Cllectin (Suth East / Natinal) Sandstck Cllectin (Suth East / Natinal) Trr Cllectin (Suth West) Traditinal Cllectin (Suthern)

7 Financial infrmatin Revenue fr the year ended 31 December 2017 was 33.0 millin Prfit befre tax fr 2017 was 2.8 millin Frecast EBITDA in 2018 is 4.2 millin (2017: 3.5 millin) New factry in Suth Wales due t be cmmissined in Q t increase capacity and drive grwth Strng fixed asset base - reprted grss assets were 17.0 millin at 31 December 2017 Nte: 2018 frecast figures are Edenhall management estimates

8 Deal structure and acquisitin metrics Initial cash cnsideratin f 11.8 millin fr the entire share capital f Edenhall The acquisitin is n a cash free / debt free basis and net debt f 5.2 millin has been deducted t derive the initial cash cnsideratin Deferred cnsideratin f up t 5.4 millin, dependent n business perfrmance ver a 3 year perid The acquisitin cst represents 8.0 x 2017 EBIT 6.4 x 2017 EBITDA The acquisitin is expected t be EPS enhancing in its first full year after cmpletin In terms f net debt, funding the transactin is thrugh an additinal 25 millin debt facility line Pst transactin Net debt : EBITDA and gearing will remain well within ur Grup target metrics with cntinuing headrm capacity

9 Funding and facilities update Expiry date F acility C umulative F acility m m Additinal 25 millin facility arranged 2023 maturity Cmmitted facilities: Q Q Q Q Q On demand facilities: Cmfrtable facilities and headrm Balance f cmmitted and uncmmitted facilities Cntinuing strng cmfrt against cvenants Available all year Seasnal (February t August inclusive)

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