Shares in Epwin Group PLC (LSE:EPWN) surged by 29.8% after the company confirmed it has agreed to a £167.3 million all-cash acquisition by the UK subsidiary of German construction conglomerate Laumann Group.
The deal, which prices Epwin at 120 pence per share, reflects a significant premium over its recent trading value and equates to roughly 6.1 times the company’s forecasted adjusted earnings for 2024.
The board of Epwin has unanimously recommended the offer. Laumann’s move signals a clear intention to deepen its footprint in the UK building products sector, with the acquisition of Epwin viewed as a strategic entry point into a market seen as both resilient and expanding.
Citing Epwin’s strong portfolio of brands and the limited operational crossover between the two businesses, Laumann expressed confidence that the deal aligns well with its long-term growth ambitions.
Epwin, which manufactures low-maintenance, energy-efficient building materials, operates across the repair and maintenance, new build, and social housing segments of the construction industry. The company believes it stands to benefit from access to Laumann’s scale, technical expertise, and infrastructure post-acquisition.
Management also emphasized that the offer gives shareholders full liquidity at a valuation not seen in over eight years—a particularly appealing outcome amid the ongoing headwinds facing UK small-cap equities.
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