We are pleased to announce the acquisition of the entire share capital of PLS Holdings Ltd, incorporating Precision Lift Services Ltd (“Precision” or “the Business”), for an initial cash consideration of £5.5m (the “Acquisition”). Precision’s services include lift installations and replacements, planned lift servicing, a 24-hour responsive repair service, bespoke design and manufacture, upgrades and modernisation, and disability adaptation work for local authorities and social housing associations in London and the South East. The acquisition brings these additional capabilities into the Group, complementing the Group’s existing gas, water, air and fire protection services within its Compliance division.
In line with the Group’s growth strategy, the acquisition will create new opportunities for collaboration and the cross-selling of additional and more comprehensive compliance services to local authorities and housing associations.
Precision is headquartered in Upminster, Essex and was founded in 1996 by current Managing Director, Graham More. The Business employs 69 staff, comprising engineers, technical personnel and management and support staff. Mr More will remain with the business following completion of the acquisition. The business is currently owned by Graham and Danielle More.
In the financial year ended 31 August 2014, Precision reported a turnover of £11.6m and profit before tax of £0.5m. Precision had gross assets of £3.3m as at 31 August 2014. The acquisition is expected to be earnings enhancing in the first full year post-completion.
Under the terms of the acquisition, the consideration comprises an initial amount payable in cash on completion of £5.5m to the sellers of the Business and a further deferred consideration payment of up to £3.0m, dependent on Precision’s financial performance in the period up to 30 September 2018.
The acquisition represents a further step in the Sureserve Group’s growth strategy as the Group continues to expand and develop through targeted, complementary acquisitions which provide an excellent platform for organic growth.
As a result of the acquisition, the Sureserve Group’s total headcount will rise to more than 2,400.
Stuart Black, Executive Chairman, said:
“This acquisition meets with our strategic objectives of buying complementary businesses which enhance our existing services – in this case within the Compliance division.
“Precision’s technical expertise and strong track record will allow us to capitalise on growth opportunities in London and the South East, as well as offering new services to our existing clients throughout the UK. This is another positive step in the Group’s strategy of acquiring successful businesses and enhancing our strong organic growth.”
Graham More, Managing Director of Precision, said:
“Joining The Sureserve Group is great news for Precision and for our clients. We share a commitment to strong growth, quality client service, and making a positive impact in the social housing sector. After almost 20 years of developing our lift business, now is the right time to advance further as part of a bigger, stronger entity and an integrated compliance offering. The deal opens up new growth opportunities for Precision as we benefit from the greater reach of the Group and its enhanced business infrastructure.”
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