The Alumasc Group plc (AIM : ALU) agreed to acquire Arp Group Holdings Ltd for £10 million on July 25, 2023. The consideration comprises an initial £8.5 million, adjusted for net cash/debt and normalized working capital, payable at completion; with additional consideration, capped at £1.5 million, payable subject to ARP's performance over the two years ending November 2024. The transaction will be funded from current cash and debt facilities.

For the year ended 2023, Arp Group had £10.8 million, adjusted EBITDA of £1.3 million and net assets were £4.5 million. The transaction is subject to regulatory and UK Competition and Markets Authority approval. Transaction is expected to close within 3 months of July 24, 2023.

As of December 15, 2023, Alumasc Group confirms that the UK Competition and Markets Authority has today formally issued unconditional clearance in relation to Alumasc's acquisition of ARP Group, which is now expected to complete by December 31, 2023. ARP is expected to be immediately accretive to underlying earnings. Julian Blunt and Edward Whiley of Cavendish Capital Markets Limited acted as financial advisor to The Alumasc Group plc.