The acquisition deal will see Marshalls pay £11.8m up front for Newport-based Edenhall with up to £5.4m deferred over three years depending on performance.
Edenhall, which operates from 10 sites across the UK, employs around 250 staff and achieved £33m sales last year generating a profit of £2.8m
Martyn Coffey, chief executive of Marshalls, said: “Edenhall is a profitable business with a strong track record of quality, reliability and service, primarily targeting builders’ merchants and regional and national house builders.
“The acquisition is in line with our stated strategy of expanding into adjacent building products related to new build housing.”
£430m revenue Marshalls manufactures concrete and natural stone paving, minerals including aggregates, ready-mix mortar and street furniture and last year made a profit of £52m.
It employs 2,300 staff at manufacturing sites in both the in the UK and Belgium, with overseas offices in the US, Dubai and China.