Alumasc, the Kettering-based sustainable building products, systems and solutions group, has agreed to acquire Leicester-based ARP Group, a manufacturer and distributor of specialist metal rainwater and architectural aluminium goods.
The deal, worth up to £10m, comprises an initial £8.5m, with additional consideration, capped at £1.5m, payable subject to ARP’s performance over the two years ending November 2024.
ARP marks the first acquisition by Alumasc since 2018 and demonstrates the group’s strategy to supplement organic growth through earnings accretive acquisitions.
ARP was established in 1987, and operates from four facilities totalling over 47,000 square feet, with a team of over 70 experienced staff. ARP’s consolidated unaudited results for the year ended February 2023 showed revenue of £10.8m and adjusted EBITDA of £1.3m. Consolidated net assets were £4.5m.
Paul Hooper, Chief Executive of Alumasc, said: “We are delighted to welcome ARP, along with all our new colleagues to the Alumasc Group. This acquisition aligns with our strategy of accelerating our organic growth with complementary bolt-on acquisitions. ARP will broaden the group’s existing product offerings, and augment the routes to market for both businesses.”
