ET Clay Products — Acquisition by Brickability Group plc
UK distributor of domestic and imported facing bricks, handmade bricks and premium clay roof tiles, supplying builders' merchants and construction customers, acquired by Brickability Group, illustrating the valuation of a profitable specialist building-materials distributor with established supplier relationships and a substantial customer network.
This transaction involved a business above the $1m–$50m SME revenue benchmark. It is included for industry context and is not a direct SME comparison.
Acquirer
Brickability Group plc
Year
2022
Maximum Consideration
£11.6m (max. consideration)
Revenue
£44.3m (~$53m)
Adjusted EBITDA
£3.0m (Adjusted EBITDA)
Max. Consideration / Adjusted EBITDA
3.9×
Industry
Building Materials Distribution
Transaction
On 30 September 2022, Brickability Group completed its acquisition of ET Clay Products Limited and Heritage Clay Tiles Limited, collectively referred to as ET Clay Products. The UK business specialised in the distribution of domestic and imported facing bricks, handmade bricks and premium clay roof tiles, supplying builders' merchants and construction customers. For the year ended 30 July 2022, ET Clay Products generated approximately £44.3 million in unaudited revenue and £3.0 million in adjusted EBITDA. The acquisition involved maximum consideration of £11.6 million, comprising £8.1 million in initial consideration and up to £3.5 million in deferred, performance-linked payments. The maximum consideration represented approximately 3.9× historical adjusted EBITDA. The acquisition strengthened Brickability's specialist building-products distribution operations and expanded its importing division, with opportunities to improve purchasing economics and expand distribution through Brickability's existing network.
Why the Premium?
- Established specialist brick and roofing tile distribution business
- Relationships with UK and international manufacturers
- Approximately £44 million in annual revenue
- Established builders' merchant and construction customer relationships
- Specialist sourcing and importing capabilities
- Opportunities for procurement and distribution efficiencies
SME Takeaway
The ET Clay Products acquisition provides a relevant UK transaction example for established building-materials distributors. At approximately 3.9× historical adjusted EBITDA, the maximum announced consideration illustrates the valuation of a profitable specialist distributor with established supplier relationships and a substantial customer network. With approximately £44.3 million in annual revenue (roughly $53 million using an illustrative 2022 exchange rate), the business sits slightly above SME Multiples' indicative $1m–$50m revenue benchmark. The transaction also included performance-linked deferred consideration, meaning the final amount paid could be lower than the announced maximum. The 3.9× figure represents maximum announced consideration divided by adjusted EBITDA, rather than a fully reconciled enterprise-value multiple.
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.