Anglo buys stake in aluminium business
Anglo European acquired Corby-based Aluminium Shapes for an undisclosed amount at the end of July 2019.
The Manchester-based steel reinforcement company already had a 25% stake in the business, which it acquired in 2017.
Aluminium Shapes supplies a number of market sectors with aluminium components, and only had a small interest in the fenestration industry.
The acquisition is part of Anglo European’s strategy to expand into the aluminium market, while offering customers cheaper ancillaries – such as baypoles and couplers – than are available from their existing suppliers.
Anglo European is backed by Octopus Investments, but the acquisition required no extra funding from the investors.
“At the end of March 2018, Anglo recorded sales of aluminium ancillaries to the fenestration sector of £400K,” sales manager Lee Marriott said. “Within 18 months we had more than quadrupled that figure, recording sales of £1.6 million.
“By talking to customers, we could find out what they need and sell it to them at a sensible price. Some of the PVCU systems companies make more money from the sales of steel and aluminium than they do from PVCU profile.
“We’ve got ancillary products designed for each systems house. After we have grown these markets, we will design and launch new products that will complement the existing range.
“The sky is the limit because Anglo has got a massive customer database, and each time we launch a new product we have by its very nature a new captive audience.
“Not only are the products made in the UK, but our suppliers of steel coil and aluminium billet are also based in the UK.”
Group financial director David Evans said: “There’s a lot on the horizon. Buying Aluminium Shapes was a natural evolution because we can sell aluminium into our existing customer base, and as a group we are quite lean.”
Aluminium Shapes’ managing director Darren Millard said: “Aluminium Shapes is a unique niche company. We can be active in lower volumes which gives us access to that part of the market where the big guys are not interested.
“Aluminium Shapes also allows Anglo European’s steel business to enter new sectors, such as commercial vehicles and partitioning. With all the crossover elements, there is a great opportunity to expand.”