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26 JULY 2023 AL CIRCLE

Sustainable building solutions firm Alumasc agrees to acquire ARP Group

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

On Tuesday, July 25, the England-based sustainable building products, systems and solutions organization Alumasc Group PLC, announced that it has agreed to acquire ARP Group, a manufacturer and distributor of specialist metal rainwater and architectural aluminium goods. However, acquiring the entire issued share capital is subject to regulatory approval from UK Competition and Markets Authority. The directors anticipate finalizing this process and completing the acquisition within the next three months from the announced date.

Sustainable building solutions firm Alumasc agrees to acquire ARP Group

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Alumasc, headquartered in Kettering, England, specializes in supplying building and engineering products. The ARP Group consists of two main entities: ARP Group Holdings Ltd and its subsidiary, Aluminium Roofline Products Ltd. Additionally, it includes Rainwater Online Holdings Ltd and its subsidiaries, Envelope Solutions Ltd and Cast Iron Superstore Ltd.

The purchase price for the acquisition is £10 million, payable in cash, and the transaction will be conducted on a cash and debt-free basis. The agreement involves an initial payment of £8.5 million, which will be made upon completion. Additionally, there is a potential for further compensation, capped at £1.5 million, contingent on ARP's performance during the two-year period until November 2024.

The acquisition of ARP is anticipated to have an immediate positive impact on underlying earnings and will be financed through existing cash reserves and available debt facilities.

Sustainability in the Global Aluminium Industry

Paul Hooper, the Chief Executive Officer of Alumasc Group, 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."


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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