Yorkshire distribution specialist SIG UK has acquired a Cambridgeshire business in a deal worth £36.5m.
The Sheffield-based building materials firm said the deal for Miers Construction Products Limited (MCP), a leading supplier of specialist construction materials based in St Neots, marks a strong strategic fit for the business. It has made the acquisition for an initial cash consideration of £28m and a further payment of up to £6.7m is subject to the firm’s business between now and the end of 2023, together with a deferred cash payment of £1.8m, payable in 24 months.
The company said the acquisition of MCP broadens SIG’s UK offering in high-performance construction accessories and fixings, and is a strong fit with SIG’s business model of entrepreneurial teams to deliver “superior service through deep supplier partnerships and specialist expertise”. SIG also said it will strengthen existing relationships with key end-users, serving complementary customer and supplier groups across a number of key sectors.
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It said here are also significant growth opportunities across the combined business, driven by SIG’s national supply network and product range. together with MCP’s strong global supply chain and supplier agreements.
MCP, which was founded in 2010, was acquired from two founding shareholders and four members of its management team. The existing management team are remaining with the business and MCP will continue to trade under its existing brand.
Steve Francis, chief executive officer of SIG, said: “We are delighted to announce the acquisition of MCP, which demonstrates delivery of SIG’s Group strategy to grow both organically and through carefully targeted value-enhancing acquisitions. MCP is a highly attractive specialist business with a strong brand, a great reputation for quality service, and technical sector specialism and expertise. These key elements have created a business that has the ability to grow sustainably ahead of the market.
“MCP illustrates the opportunities to accelerate through acquisition our path to 5% margins in the medium term. We welcome MCP’s knowledgeable and committed management team and employees to SIG and look forward to working with them.”
