Industrial services star Brammer’s consolidation mission continues apace, with the deal-hungry group having acquired UK outfit CBS for up to £9.5m.

Earnings enhancing from the get-go, the acquisition of Midlands-based CBS, a provider of critical industrial components, bearings and power transmission products with sales of circa £7.2m last year, further extends the group’s leadership in a hugely fragmented European market, and enhances the ability of Brammer, which operates in around 15 countries, to service ‘key’ accounts, where it is seeing strong growth.

More specifically, CBS gives Brammer a leading position in the provision of bearings and mechanical power transmission in the strategically important Midlands industrials market. This latest deal is bang in line with management’s consistently stated mission to grow both organically and through bolt-on acquisitions, consolidating its position as the only supplier capable of servicing the needs of major, European-wide clients.

In February, Brammer delighted investors with strong growth for calendar 2007, driven by improving performance, market share gains and astute acquisitions in the UK and continental Europe. On sales up almost 21% at £379.6m, adjusted pre-tax profits powered more than 28% higher to £15.4m, driving earnings 26.5% higher to 21p.

Following a strong annual cash performance – cash generated from operations burgeoned by 40% to £16.7m – the total dividend was increased by 20% to 7.2p. Trading on a relatively undemanding historic earnings multiple of 13.8 with a 2.5% yield, Brammer is a buy.

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Brammer	LSE	£63.27m	119.50p	0.00p
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