Building materials manufacturer Epwin (EPWN) has bought Stormking Plastics, a supplier of housebuilding components, for a total initial consideration of £27m. This will comprise £20.25m payable in cash on completion of the deal, and 5.3m new Epwin shares which are subject to a 12-month lock-in before they can be sold. A further £8m could be payable, depending on Stormking's performance in the year to 28 February 2017.
In the year to 28 February 2015, Stormking reported turnover of £22.8m and cash profits of £3m, and expectations for the current year centre on turnover of £25m and cash profit of £4.5m. Epwin also revealed that despite challenging conditions in the repair, maintenance and improvement market in the second half of the year, profit for the 2015 calendar year will be in line with market expectations.
