Brick maker Ibstock has announced plans to float on the London Stock Exchange and raise around £100m. The funds will be used to refinance its existing debt facilities, thus reducing the cost of debt and securing new facilities worth around £200m.
Ibstock is currently the UK’s largest clay brick manufacturer by volume, with around 40 per cent of the market. Previously it was listed in 1963, subsequently acquiring Glen-Gery of the US in 1979. Subsequent acquisitions included Tarmac Bricks, Redland Bricks and Hepworth Brick before being bought itself by CRH (CRH) in 1999. In December last year, CRH agreed the sale of its UK clay and concrete operations, including Ibstock, to funds managed by Bain Capital Europe LLP.
In the first half of this year Ibstock generated sales of £395m and adjusted cash profits of £87m. Dividend payments will start with a final payment for 2015, payable some time in May 2016. Full details of the offer will be included in the prospectus expected soon.
