Landscape products firm Marshalls has bought CPM Group, a pre-cast concrete manufacturer, for £38m in a deal which is expected to be earnings enhancing in its first full year after completion.
Elland-based Marshalls said CPM will initially trade as Marshalls CPM within the wider Marshalls Group.
Marshalls' chief executive Martyn Coffey said: “Marshalls’ 2020 Strategy is to grow both organically and through carefully selected earnings enhancing bolt-on acquisitions with a particular focus on the identified growth areas of water management, security and mineral products.
"The acquisition of CPM represents a significant step towards achieving one of our strategic goals. CPM is a profitable business with a strong track record of quality and service, primarily targeting public sector and commercial end users and the acquisition will expand Marshalls’ product range into below ground drainage."
CPM was established in 2004 and reported revenue of £51.2m and pre-tax profit of £4.6m in the year to December 31. It operates from two manufacturing sites at Pollington, near Goole in East Yorkshire, where it employs around 150 people, and at Mells in Somerset. It also has ancillary offices in the Midlands and Scotland and employs around 350 people in total.
CPM manufactures concrete pipes, containment and inspection chambers, manhole covers, retaining walls and other bespoke industrial concrete products for the construction sector, including housebuilding and major infrastructure projects such as Hinkley Point A, HS2 and A14 Cambridge.
The acquisition will be funded from Marshalls' existing group facilities.
Mike Stacey, former managing director of CPM, will remain with the business and will join Marshalls’ senior management team, reporting to Mr Coffey.
Separately, Marshalls confirmed there has been no change in its expectations for the full year since the publication of its half year results on August 17 when it reported a big jump in half year profits as more people spend their pension pots on home improvements.
The firm said pre-tax profits rose 16 per cent to £29.1m in the six months to June 30 and the group said at the time it was confident it will deliver its predicted results for 2017 as it outperforms the market.
Marshalls will issue a further trading update on January 10.
Marshalls manufactures and distributes hard landscaping products such as concrete and natural stone paving, ready mix mortar and street furniture.
It has manufacturing sites in the UK and Belgium, and overseas offices in the US, Dubai and China. It employs around 2,200 people.