Marlowe PLC Acquisition of BBC Fire Protection Limited (9392V)
03 February 2017 - 6:00PM
UK Regulatory
TIDMMRL
RNS Number : 9392V
Marlowe PLC
03 February 2017
3 February 2017
Marlowe plc
Acquisition of BBC Fire Protection Limited
Marlowe plc ("Marlowe", the "Company" or the "Group"), the
support services group focused on acquiring and developing
companies that provide critical asset maintenance services,
announces that it has acquired BBC Fire Protection Limited ("BBC")
for GBP4.1 million on a cash and debt free basis (the
"Acquisition").
Founded in 1979, BBC operates nationally from headquarters near
Norwich and employs around 100 staff. BBC provides a comprehensive
portfolio of fire protection services to over 700 customers with a
significant presence in the retail, banking, education and social
housing sectors. BBC's services are highly complementary to those
offered by existing Marlowe businesses.
The Board believes the Acquisition will:
á significantly expand the scale of the Group's Fire division,
offer synergy benefits and provide additional critical mass and
route density in geographical regions that are attractive to the
Group;
á materially increase the customer base and recurring revenues
of the enlarged Group, with the addition of large blue-chip
organisations to which the Group can cross-sell other services;
á extend Marlowe's market position to become one of the four
largest providers of fire protection services in the UK;
á immediately enhance Group earnings.
For the year to 31 December 2015, BBC reported audited revenues
of GBP9.1 million, adjusted EBITDA of GBP1.0 million and profit
before tax of GBP0.6 million. Unaudited net assets on at 30
November 2016 were GBP5.9 million. The Acquisition will be financed
from the Group's existing cash resources.
The total consideration payable is GBP8.3 million, which
includes GBP4.2 million of net cash held by BBC and a long
leasehold property valued at approximately GBP0.5 million.
The key members of BBC's operational management team will be
staying with the business.
Alex Dacre, Chief Executive of Marlowe plc, commented:
"The acquisition of BBC is a further significant step in our
strategy of consolidation of the UK fire protection sector. The
business benefits from strong recurring revenues, longstanding
customer relationships and will further strengthen our national
coverage."
For further information:
Marlowe plc www.marloweplc.com
Alex Dacre, Chief Executive Tel: +44 (0) 203 841
6194
IR@marloweplc.com
Cenkos Securities plc (Nominated Adviser and Broker)
Nicholas Wells Tel: +44 (0)20 7397 8900
Elizabeth Bowman
FTI Consulting
Nick Hasell Tel: +44 (0)20 3727 1340
Alex Le May
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 announcement contains Inside Information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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