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Watchdog investigates Alumasc gutter merger

This post was originally published on this site

https://constructionwave.co.uk/2023/10/26/watchdog-investigates-alumasc-gutter-merger/

The Competition and Markets Authority (CMA) is investigating the proposed acquisition by Alumasc Group of ARP Group and Rainwater Online Holdings. 

The watchdog is considering whether the transaction could result in a “substantial lessening of competition” within UK markets. 

Ahead of a formal investigation, the CMA is inviting comments on the deal from any interested parties. 

In July, Stock Market listed building products supplier Alumasc agreed to acquire ARP Group, its subsidiary Aluminium Roofline Products and Rainwater Online Holdings for £10 million cash. 

At the time the acquisition was conditional on approval from the CMA.  

Leicester-headquartered ARP is understood to employ around 70 people.  

Alumasc turned over £89.4 million in FY2022, compared to £77.8 million the previous year.  

The deadline by which evidence should be submitted to the CMA is 9 November. 

Written representations to case officer James Banks: james.banks@cma.gov.uk 

In a September trading update, Alumasc wrote: “The management team has focused on execution of our growth strategy. Strong organic growth was delivered in our Housebuilding Products and Building Envelope divisions. Inorganic growth is also being pursued with the proposed acquisition of ARP Group (subject to CMA approval).

“ARP will complement Alumasc’s business model, broadening our product range in the Water Management division and augmenting our routes to market.

“We are excited at the prospect of this transaction bringing attractive scaling opportunities for both businesses.

“As we enter FY24, we anticipate that short-term market conditions will remain challenging, but are confident that we have undertaken the right actions to manage these, while positioning the Group well for when markets normalise.” 

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The post Watchdog investigates Alumasc gutter merger appeared first on Construction Wave.

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