Galliford Try Holdings PLC Acquisition (4085O)
08 October 2021 - 1:23AM
UK Regulatory
TIDMGFRD
RNS Number : 4085O
Galliford Try Holdings PLC
07 October 2021
The information contained within this Announcement constitutes
inside information. Upon the publication of this Announcement via A
Regulatory Information Service, this inside information is now
considered to be in the public domain.
FOR IMMEDIATE RELEASE.
7 October 2021
Galliford Try Holdings plc ("Galliford Try")
Acquisition of nmcn's Water business from nmcn plc (in
administration) ("nmcn") and nmcn Sustainable Solutions Limited (in
administration)
The Board of Galliford Try is pleased to announce that it has
agreed to acquire substantially all of nmcn's Water business
including the specialist water process and control businesses
Nomenca and Lintott (together, "nmcn Water" or the "Water
Business") for an aggregate consideration of GBP1.0 million in cash
(the "Transaction").
Commenting on the Transaction, Bill Hocking, Chief Executive of
Galliford Try, said:
"I am delighted to welcome the employees, clients and suppliers
of nmcn Water to Galliford Try. This acquisition is an excellent
strategic fit with our existing business and will accelerate the
growth of our successful Environment division, providing work with
new clients and increasing our capabilities. This is a very
exciting time as we deliver our Sustainable Growth Strategy and I
look forward to a bright future for our collective team."
nmcn Water profile and fit with Galliford Try
nmcn Water works with UK water utility companies to build and
maintain high-quality water and wastewater treatment systems. Its
geographic coverage, customer relationships and technical
capabilities are all highly complementary to Galliford Try's
existing operations.
Galliford Try has a detailed understanding of nmcn Water's
operations and has closely followed the evolution of the Water
Business through nmcn's refinancing process and various trading and
financial disclosures through 2021. In combination, this knowledge
has provided us with a thorough understanding of nmcn Water and its
prospects.
The 75 year heritage and values of nmcn Water are an excellent
fit with the history and values of Galliford Try. In particular,
the Transaction is consistent with our recently published
Sustainable Growth Strategy:
-- Providing a geographic footprint that will accelerate growth
of the Water Business through a series of established frameworks
with new customers for Galliford Try;
-- Extending our capabilities in the design and Mechanical,
Electrical, Instrumentation, Control and Automation (MEICA)
elements of the Water Business; and
-- Introducing further high quality people to strengthen our own talent pool.
Galliford Try is especially appreciative of the efforts of
nmcn's customers, suppliers, employees and management over the last
year and will be engaging proactively to provide the stability to
move forward. Approximately 900 nmcn Water employees will join
Galliford Try as a result of the Transaction, including its senior
management team.
Details of the Transaction
Galliford Try will acquire substantially all of nmcn's Water
Business, including the specialist water process and control
businesses Nomenca and Lintott. The Water Business generates annual
revenue of approximately GBP100 million and the Transaction is
expected to be immediately earnings enhancing, before transaction
and restructuring costs. The Transaction has been implemented by
way of an administration sale.
In addition to the GBP1.0 million purchase price, Galliford Try
anticipates that it will have to fund certain contractual
liabilities incurred prior to the completion date of the
Transaction which will be necessary to provide operational
stability to the Water Business.
For the year ended 31 December 2019, being the last year for
which nmcn has published audited results, nmcn's water segment,
prior to subsequent re-statements, generated operating profit of
GBP7.6 million on turnover of GBP282.6 million. The gross assets of
nmcn's water segment were GBP70.0 million as at 31 December
2019.
The person responsible for arranging the release of this
announcement on behalf of Galliford Try is Kevin Corbett, General
Counsel & Company Secretary.
- End -
For further information please contact:
Galliford Try Holdings plc Tel: +44 (0)18 9585
Bill Hocking, Chief Executive 5001
Andrew Duxbury, Finance Director
Kevin Corbett, General Counsel & Company
Secretary
Peel Hunt LLP (Financial Adviser and Corporate Tel: +44 (0)20 7418
Broker) 8900
Charlie Batten
Harry Nicholas
Miles Cox
Tulchan Communications Tel: +44 (0)20 7353
James Macey White 4200
Victoria Boxall
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQMRBITMTBMBPB
(END) Dow Jones Newswires
October 07, 2021 10:23 ET (14:23 GMT)
Galliford Try (LSE:GFRD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Galliford Try (LSE:GFRD)
Historical Stock Chart
From Apr 2023 to Apr 2024