Marshalls boosts earnings with £38m acquisition

Marshalls' chief executive Martyn Coffey
Marshalls' chief executive Martyn Coffey

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.

M​arshalls' 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 ​p​ublic ​s​ector and ​c​ommercial 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​ employ​s​ 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 ​g​roup facilities.

Mike Stacey, former ​m​anaging ​d​irector of CPM, will remain with the business and will join​ ​Marshalls’ senior management team, reporting to M​r Coffey.