North West law firm Farleys Solicitors has worked alongside Pierce Accountants to advise the shareholders of the UK’s largest independent brick fabricator on the sale of its entire share capital to Michelmersh Brick Holdings.
FabSpeed was created following the merger of LiteSpeed and Fab-Lite in 2021 (Farleys Solicitors and Pierce both advising on this previous deal) and is a manufacturer of pre-fabricated building products, focussing on bespoke, complex and specialist products such as chimneys, arches, canopies and dormers. The business employs 89 people and operates from three locations in West Yorkshire and Oxfordshire. The longstanding management team will transfer with the business.
The deal was worth an initial £6.25m on a cash-free and debt-free basis, and is subject to target working capital adjustments. There is potential for an additional deferred consideration of up to £2 million based on achieving future adjusted EBITDA growth targets over two financial years.
Chris Penston & Mark Richards, Directors of FabSpeed commented:
“We are delighted to join the Michelmersh Group. Our portfolio of innovative prefabricated brick products will add diversity and complement their existing premium range, making Michelmersh the specialist one-stop manufacturer for all brick requirements. This opportunity enhances our Nationwide coverage by integrating fabrication facilities within the existing brick manufacturing sites, adding capacity, flexibility and growth. We look forward to exciting times ahead.”
Corporate law advice on the deal was provided to the shareholders of FabSpeed by Richard Bell of Farleys with assistance from Jodi Oosthuizen. Commercial property work was completed by Ian Liddle of Farleys with assistance from Ross Liddle. Tom Wilkinson of Pierce Chartered Accountants brokered the deal and provided accountancy, tax and general business advice.
Richard Bell, Corporate Lead at Farleys’ Manchester office commented:
It was a pleasure to work with the shareholders of Fabspeed Holdings Ltd and Tom Wilkinson at Pierce who all worked hard as a team to get this deal completed. Fabspeed Holdings Ltd is a solid business and a clear fit within the Buyer’s group offering. I wish the shareholders all the best for the future as well as the capable management team that will continue to build on Fabspeed’s success as part of the Buyer’s expanding group.
Tom Wilkinson, Director of Pierce, added:
“I am absolutely delighted for the shareholders of FabSpeed on the disposal of the group to Mickelmersh Brick Holdings Plc. Since we acted on merging two respective regional businesses less than two years ago, it’s amazing how quickly the group has gone from strength to strength to the business and leading industry brand of today! A testament to the directors and wider leadership team and we look forward to seeing the group now be taken to the next level.”