UK construction goods provider Epwin Group (Solihull; www.epwin.co.uk) has acquired its competitor Stormking Plastics (Tamworth / UK; www.stormking.co.uk) in a GBP 27m (EUR 36.6m) deal consisting of a GBP 20.3m cash payment and the remainder in shares. Depending on Stormking’s financial performance in the year to February 2017, Epwin could add up to GBP 8m to the price, due in May 2017. The purchase is in line with the Solihull-based company’s strategy to broaden its presence in low maintenance building products, while also complementing its technical capabilities and offering additional routes to market, Epwin said. Stormking will operate alongside Epwin’s extrusion and moulding businesses.

Founded in 1985, Stormking supplies moulded GRP building components such as dormers, chimneys, bay window roofs, entrance canopies and support brackets to the UK construction industry. The company runs a plant in Tamworth, Staffordshire, where it employs more than 200 workers. It posted a turnover of GBP 22.8m with EBITDA of GBP 3m in the financial year ended February 2015. Once the ongoing financial year ends – in February this year – these figures are expected to rise to GBP 25m and GBP 4.5m respectively.

When announcing the purchase, Epwin said it expects its profits for the financial year ended 31 December 2015 to be in line with market expectations, despite challenging conditions in the repair, maintenance and improvement (RMI) market.