The Alumasc Group Plc Acquires Rainclear Systems Limited
The Alumasc Group plc (ALU.L), the premium building and engineering products company is pleased to announce the acquisition of Rainclear Systems Limited ("Rainclear") for a purchase consideration of £770,000 (on a cash/debt free basis).
Rainclear is an internet based business offering metal rainwater products to the building industry and has a reputation for exceptional service and product availability.
Alumasc Rainwater is a major supplier of premium metal rainwater products, and the acquisition of Rainclear will complement the group's existing product range whilst broadening routes to market, particularly via independent merchants and the high growth internet sector.
In recent years Rainclear has seen significant growth in its steel rainwater products range. This competes effectively with plastic, the dominant material used for rainwater goods in the UK.
Rainclear will continue to trade independently within Alumasc, but the Company intends to add steel rainwater products to its market leading range of cast iron and aluminium gutters and downpipes as soon as practicable.
The existing Rainclear management team, including its former owners, Daniel and Naomi Hopkins, will remain in place to continue to drive the expansion of the business.
Initial cash consideration of £450,000 has been paid, with the remainder deferred and payable in two tranches, subject to Rainclear achieving a profit before tax of £250,000 in the year to December 2013, and £270,000 in the year to April 2014. Rainclear's profit before tax was £208,000 in its last financial year to 30 April 2012 and it had gross assets of £712,000 at that date.
Paul Hooper, Group Chief Executive, commented:
"We are delighted with the purchase of Rainclear Systems, and we welcome Daniel and Naomi Hopkins and their team to the group. The acquisition, which is expected to be immediately earnings enhancing, will further strengthen Alumasc's leading position in the UK rainwater products market as part of the group's wider strategy to grow its portfolio of sustainable building product businesses."