Forterra Acquires Bison Manufacturing
A leading UK manufacturer of hollowcore precast concrete flooring, Bison has a highly automated manufacturing facility located at Swadlincote, Derbyshire.
Forterra plc recently announced that it has entered into an agreement to acquire the trade and assets of Bison Manufacturing Ltd. from Laing O’Rourke plc for £20 million (approximately $26 million). The acquisition will reportedly be funded from the group’s existing cash balances and is expected to complete in the third quarter of 2017. A leading UK manufacturer of hollowcore precast concrete flooring, Bison has a highly automated manufacturing facility located at Swadlincote, Derbyshire, which was opened in 2006.
According to Forterra, this acquisition provides an immediate opportunity for the company to take a leadership position in the UK precast concrete market while also expanding its currently capacity-constrained business. It also enables the group to take advantage of the growing demand for these products in the residential, commercial and infrastructure markets, which are underpinned by government initiatives to tackle the country’s housing deficit and improve infrastructure.
The Swadlincote plant is reportedly the largest and most technically advanced hollowcore manufacturing facility in the UK. In addition, the site includes a specialist precast facility capable of producing a wide range of bespoke precast concrete products. Forterra management estimates that it would cost in excess of £35 million (~ $45.4 million) to replicate these assets on a greenfield site. The Swadlincote plant has been operating at little more than 50% capacity utilization. The acquisition will allow Forterra to expand its own precast concrete business to enable increased sales across the group’s range of concrete product while benefiting from production efficiencies and economies of scale as the utilization of the Swadlincote facility is substantially increased.
“The acquisition is a unique opportunity to transform Forterra’s precast business in terms of scale and capability,” said Stephen Harrison, chief executive. “We are acquiring well-invested assets whilst at the same time solving the capacity constraints on growth within our own business. We gain a well-respected brand and will attain a market leading position as we look to grow the combined business.”