SIG to spend £200m on acquisitions

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Building materials supplier SIG said it would spend about £200m on acquisitions in the next three years.

SIG, which reported a nine per cent increase in full-year underlying pretax profit, said it would increase the pace at which it acquires companies and target businesses and products in which it already operates.

“We’re very much sticking to our knitting,” said chief executive Stuart Mitchell.

Sheffield-based SIG, which held £110.3min cash as at December 31, said it expected to fund the acquisitions through a combination of cash and debt.

The company bought 12 businesses in 2014 for about £21m, seven of which were UK-based. SIG’s underlying pretax profit rose to £98.1m for the year ended December 31 from £90m a year earlier, helped by strong demand in the United Kingdom and Ireland.