US private equity firm Atlas Holdings has pulled out of its proposed acquisition of BRCK Group, the materials supplier formerly known as Brickability.
In a regulatory statement on Thursday, the South Wales-headquartered plc said Atlas, which owns Permasteelisa and Bovis Construction (previously branded Lendlease, when it was the UK construction arm of the Lendlease group), had ended its interest in the deal.
BRCK Group rejected a 65p-a-share cash approach from Atlas in March, which it said undervalued the business.
Atlas had said it wanted to carry out detailed due diligence before considering its next move.
The firm had until 28 April to make a formal offer or withdraw its interest.
Thursday’s update said Atlas confirmed it did not intend to make a firm offer for BRCK after the Welsh company’s board declined to extend the deadline.
BRCK said it had provided limited further information to the US company to see whether it was prepared to improve its offer.
This included granting access to a “virtual data room” and a 90-minute meeting with BRCK chief executive Frank Hanna.
The regulatory statement said: “The limited information supplied, and the limited management access granted in the timeframe available was not sufficient and has not enabled Atlas to complete the thorough due diligence required.”
BRCK Group shares fell by about 11 per cent on Thursday afternoon following the announcement but rebounded to 52.96p by 5pm. It opened on Friday morning at 48.5p.
In a trading update issued yesterday, just before its share price rallied, the company said it expected to report revenue of £645m in the year to 31 March 2026, an increase of 1.2 per cent.
Adjusted EBITDA would also be ahead of expectations, according to the statement.
Hanna said the firm’s diversification strategy protected it from a housing market slowdown and the impact of Building Safety Regulator delays.