www.tclarke.co.uk
T. Clarke plc is a United Kingdom-based company engaged in the installation of electrical and mechanical services, and supply of associated equipment
T Clarke buys D&S Engineering for up to £11.6m
Building services contractor T Clarke PLC (AIM: CTO) has acquired D&S Engineering Facilities, a privately owned facilities management business, for up to £11.6m. Clarke said it paid an initial £10.6m in cash, including £0.5m in escrow, and an additional payment of up to £1m is due subject to D&S reaching certain asset and cash targets. The company anticipates that the acquisition will be earnings enhancing in 2010.
“D&S Engineering is a first class business with an enviable reputation. It has a very good client base of long standing”, T Clarke chief executive Mark Lawrence said. "We believe that there is an excellent opportunity to build the scale of its facilities management operations and roll these out across the UK”.
Accrington-based D&S provides a range of facilities management services to a blue-chip UK client list. In the year ended 30 September 2009, D&S reported revenues of £16.6m and a pre-tax profit of £0.5m, after incurring approximately £1m in non-recurring costs. At 30 September 2009, the company had gross assets of £9.3m and net assets of £3.3m.
Three executive directors of D&S, Ivan Bland, Clive Jackson and Keith Gaylor, have committed to remain with the company for a minimum of at least three years after completion if the acquisition.
The deal is part of T Clarke's strategy to broaden its range of services to provide its customers a comprehensive offering in a new market sector. "This acquisition represents an important strategic development for us which will diversify and strengthen our earnings profile”, Lawrence added.
