Big River Industries Limited (ASX:BRI) entered into an agreement to acquire United Building Products for AUD 9 million on October 4, 2021. The purchase consideration of AUD 9 million at completion, comprises AUD 7 million of cash and AUD 2 million in BRI shares (to be issued at the 10-day weighted average trading price prior to the completion date). An additional earn out payment of up to AUD 1.5 million, payable over a two year period, if certain profit growth targets are achieved.

Total annual revenue of United Building Products is AUD 20 million. The acquisition is expected to be earnings per share accretive from year one and will be funded out of the Big River Industries Limited available debt facilities. Nick and Steve Grozdanov no longer have operational roles in the business, they will become meaningful shareholders in Big River Industries Ltd. The acquisition is subject to customary conditions precedent and is expected to complete in early November 2021.