BRICKABILITY Group plc, the construction materials distributor, has completed the acquisition of Topek Southern Limited in a deal of up to £48m to increase its presence in the cladding remediation market.

Established in 2009, Hampshire-based Topek Southern Limited (TSL) delivers façade systems, fire remediation, roofing, and curtain wall solutions for both live and occupied sites.

TSL acts as a principal contractor for commercial and industrial projects nationwide. Its specialist portfolio includes hotels, student accommodation, office buildings and sports stadiums.

John Richards, Brickability Chairman, said: “In addition to further diversifying the Group’s product and revenue base, the acquisition gives the group a truly national presence in the cladding market.”

Acquisition of Topek Southern Limited

TSL’s operations in southern England expand the company’s existing reach following the recent acquisition of Group Topek Holdings Ltd. It creates a full-service specialist cladding installation and remediation contracting business with national presence for the Brickability Group.

Alan Simpson, Brickability CEO, added: “Our Bricks and Building Materials division has seen cladding products supply go from strength to strength. Topek Southern will sit within the Group’s Contracting Division alongside Group Topek Holdings and will further strengthen the Group’s national presence in the market across cladding supply and installation as we continue to deliver upon the Group’s diversified multi-business strategy.”

In the 12 months to 31 August 2023, TSL generated audited revenue of £38.7m and profit before tax of £8.1m.

It is expected that the acquisition will be earnings accretive in the first full year, making greater profits as part of Brickability. The acquisition marks another step in the continuing diversification of Brickability since it became a public company in 2019. Since that time, Brickability has acquired 14 businesses, pursuing a diversified multi-business strategy to broaden and deepen the Group’s product portfolio and geographic coverage, the company reports

Dexter Copeland, TSL Managing Director, said: “We are excited to be joining the Brickability Group, and with it beginning a new chapter in the history of the business. This is a great opportunity to develop the business further as part of a larger organisation. I look forward to working within the Group for the benefit of all stakeholders.”

The deal to acquire Topek Southern Limited comprises three parts:

an initial cash consideration of £17.3m payable on completion, subject to final working capital adjustments to acquire the business on a cash-free, debt-free basis;
a further £10m for 17,094,017 new ordinary shares in the capital of TSL at 58.5p per ordinary share; and
up to £20.7m of deferred contingent payment subject to performance against target criteria over the next three years.

The acquisition will be paid for through Brickability’s existing cash resources.

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