Marshalls Announce Acquisition of Marley

MARSHALLS PLC has announced the acquisition of Marley Group plc from private equity firm owners, Inflexion for £535m with the purchase completing at the end of the month.

Marley is a key manufacturer and supplier of pitched roof systems to the UK roofing market.

The Marshalls Group plc board believes that the acquisition of Marley represents a “compelling strategic fit” and will accelerate Marshall’s five year strategy to become the UK’s leading manufacturer of products for the built environment.

Acquisition of Marley

Purchasing Marley will enable Marshalls to add a complementary range of roofing products to its range and strengthen its exposure to what it regards as the “cyclically resilient and growing UK RMI market” which it says has a strong medium term outlook and is underpinned by attractive structural drivers such as the UK’s ageing housing stock.

Both businesses employ a similar commercial strategy which focuses on generating ‘pull demand’ from key specifiers and influencers, and selling through similar sales channels including national and independent builders’ merchants.

Marshalls says there are clear opportunities to leverage its operational, manufacturing and sustainability expertise for Marley’s portfolio of UK sites, including five production facilities with a low capital requirement and will capitalise on significant growth opportunities over the medium term.

The acquisition price represents a multiple of 10.7x Marley’s Underlying EBITDA for the year ended 31 December 2021, with Marley sustaining pre-tax margins of over 20% through 2019-2021.

The Marley management team led by David Speakman (Chief Executive Officer), with Marley since 2004, Dominic Heaton (Chief Financial Officer), with Marley since 2020 and Paul Reed (Chief Operating Officer), with Marley since 1989, will continue to lead the firm and Marley will operate initially as a standalone division.

Significant Step

Martyn Coffey, Chief Executive of Marshalls, said: “The acquisition of Marley represents a significant step towards achieving our strategic goal to become the UK’s leading manufacturer of products for the built environment.

“Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business.”

David Speakman, Chief Executive of Marley, added: “Marley is a robust business with a strong future ahead of it. As part of the Marshalls family, I believe we will be extremely well-positioned to continue our growth strategy to the benefit of our colleagues, customers and partners.”

The Marley Group has operated for around 100 years, and has offered a full pitched roof solution since the 1920s. Over the past decade, Marley has added to its roof system offering with the addition of timber battens and roof-integrated solar panels.

Marley Group has 569 employees. In the year ended 31 December 2021, the Marley Group generated  revenue of £172.6 million and reported an operating profit of £25.2 million.

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