Malmesbury-based Megasteel in £63 million takeover bid
More Acquisitions has agreed a deal to buy Malmesbury-headquartered Megasteel – the largest independent stockholder and distributor of steel for the prestressing and post-tensioning for concrete products in the UK.
The deal values Megasteel at between £49.5 million and £63 million.
Megasteel acts as an independent steel supplier, specialising in the distribution of steel for the reinforcement of concrete. Megasteel holds extensive stocks of wire and strand in its warehouses in Felixstowe and Ipswich, while its headquarters has been in Malmesbury since it acquired sheet metal processing company Sweetnam and Bradley in 2019.
More Acquisitions was formed for the purpose of undertaking one or more acquisitions of a majority interest in a company or business.
Roderick McIllree, executive director of More Acquisitions, said: “We have reviewed a large number of assets and businesses in many different sectors during the last six months as possible acquisitions for More Acquisitions.
“After undertaking intensive due diligence, we believe that Megasteel stands out as a high-value, profitable investment for our shareholders.
“Megasteel is well-established and a leading player in its sector, with a long history of profitability and industry excellence, and we believe that it has the potential to deliver long-term value to More Acquisitions and its shareholders.”
Nigel Roberts, CEO of Megasteel Ltd said: “We have built Megasteel over the last 30 years to be one of the biggest suppliers in the UK of prestressing wire and strand, a product used in almost every construction project in the country, and we have been considering a listing of the business for many years. We are pleased to be working with More Acquisitions as the vehicle that will enable us to do this.
“Over many years we have been able to grow our sales, generate revenues, make profits and turn those profits into cash which we have reinvested into the business to keep the cycle going. Applied over a long period of time these business methods have produced a profitable business that I am proud to have started.
“Three years ago, we acquired Sweetnam and Bradley, a business that has for over 60 years followed the same principles as Megasteel. This acquisition has been successful for us. Our intention is to continue to grow our business organically and through further acquisitions of other successful businesses.
“We were attracted to More Acquisitions as our vehicle to list because we liked the simplicity and cost-effective way in which it had been set up with its ‘one price for all’ no advisory or broking fees, capped listing and ongoing costs and no director salaries, the company and its key stakeholders fitted very well with our views on how a business should be run.”