Acquisition

RNS Number : 2551Q

Latham(James) PLC

15 February 2019

 

James Latham plc

("James Latham" or "the Company")

Acquisition

James Latham is pleased to announce that it has acquired the entire issued share capital of Abbey Wood Agencies Limited ("Abbey Woods"), a leading Irish timber merchant and the official distributor of Accoya wood in Ireland. 

The Company has acquired Abbey Woods for an initial payment of EUR1.825 million with a further payment of EUR300k to EUR400k due for the net assets subject to completion accounts.  In addition, an earn out of up to EUR400k is payable to the vendors over the next two years subject to turnover targets being met.  The consideration will be satisfied in cash from the Company's existing resources.

For the year ended 28 February 2018, the turnover of Abbey Woods was EUR7.5 million and EBITDA was EUR379k.  Founded in 1983, Abbey Woods specialises in the supply of Accoya, hardwood and softwood timber, hardwood decking, composite decking, cladding, worktops and wood components for use in a variety of market segments, from building and construction to kitchen, furniture and joinery manufacturer.  Abbey Woods operates from sites in Dublin and Cork.

Commenting on the acquisition, Nick Latham, Chairman of James Latham, said "We are delighted to have acquired Abbey Woods which is our first acquisition outside of the UK.  There are strong synergies between the two companies and it complements our existing business in Ireland that is currently serviced from our Leeds depot.  I look forward to working with the Abbey Woods team."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.

For further information please visit www.lathams.co.uk or contact:

James Latham plc	Tel: [phone]
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Lindsay Mair (Corporate Finance)	Tel: [phone]
Abigail Wayne (Corporate Broking)

 

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