Forterra: Bison deal concretes group growth ambitions

Forterra plc | Published on 28/07/2017

Brick and concrete products manufacturer Forterra has broadened its end markets and added to the group’s growth prospects with what we see as the opportunistic £20m acquisition of the trade and assets of Bison Manufacturing from loss-making construction group Laing O’Rourke. Forterra states that it would have cost over £35m to build the business itself on a greenfield site and estimates that the deal will make returns in excess of its cost of capital during 2019. We estimate it will at least break even in 2018.

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