Acquisition of Fire Alarm Fabrication Services Ltd
12 May 2016
Marlowe plc
Acquisition of Fire Alarm Fabrication Services Limited
Marlowe plc ("Marlowe"), the support services group focused on acquiring and developing companies that provide critical asset maintenance services, announces the acquisition of Fire Alarm Fabrication Services Limited ("FAFS") for an enterprise value of £1.2 million.
FAFS is a provider of fire protection services based in Chessington, Greater London, with approximately 35 employees. The company was founded in 1990 and installs and maintains fire protection systems under contract for a broad range of business customers in and around the London area.
Following the recent acquisition of Manchester-headquartered Swift, the acquisition of FAFS provides Marlowe with an enlarged base from which to service customers in the London area and cross-sell other group services, including security and water treatment, which share the same channel to market as fire protection. The FAFS senior management team will stay with the business post-acquisition.
In the 12 months to 31 January 2016, FAFS recorded revenues of £3.8 million and profit before taxation of £0.9 million. At 31 January 2016 FAFS' net asset value was £1.6 million.
The enterprise value of £1.2 million comprises consideration of £1.9 million net of £0.7 million of cash held by FAFS on completion. Additional consideration of up to £0.1 million may be payable to the vendors subject to achievement of certain performance targets within the FAFS business in the period to 11 May 2017.
The acquisition was financed from Marlowe's existing cash and debt facilities.
Alex Dacre, Chief Executive of Marlowe plc, commented:
"FAFS benefits from a strong base of recurring revenues and fits well alongside Swift in providing us with an excellent platform for growth in the London market. We continue to make good progress in implementing our strategy of building a leading support services group focused on critical asset maintenance and we look forward to working with FAFS in accelerating our growth."
For further information:
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Marlowe plc |
www.marloweplc.com |
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Alex Dacre, Chief Executive |
Tel: +44 (0) 203 841 6194 |
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Derek O'Neill, Group Finance Director |
IR@marloweplc.com |
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Cenkos Securities plc (Nominated Adviser and Broker) |
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Nicholas Wells, Elizabeth Bowman, Camilla Hume |
Tel: +44 (0)20 7397 8900 |
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FTI Consulting |
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Nick Hasell |
Tel: +44 (0)20 3727 1340 |
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Alex Le May |
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About Marlowe plc
Marlowe is an AIM-listed company formed to create sustainable shareholder value through the acquisition and development of businesses that provide critical asset maintenance services in the UK. It is focused on fire protection, security systems and water treatment services - which are essential to its customers' operations and invariably governed by regulation, and where customers require a single specialist outsourced provider with nationwide coverage. Our customers can be found on most high streets, in office complexes and industrial estates, and include SMEs, local authorities, facilities management providers, multi-site NHS trusts and FTSE 100 companies.
This information is provided by RNS
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