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Franchise Brands acquires Willow Pumps to expand Metro Rod network

The water pump supply, installation and servicing business will complement the services provided by Metro Rod, acquired two years ago

Franchise Brands PLC - Franchise Brands acquires Willow Pumps to expand Metro Rod network
Franchise Brands will acquire all Willow Pumps’ shares for an initial £5mln and a deferred consideration of up to £7.5mln

Franchise Brands PLC (LON:FRAN) has acquired Willow Pumps to expand its existing drain care and repair business, Metro Rod.

Bringing the two brands together, the long-term goal is to provide a “water in, waste out" range of plumbing-related services to commercial customers in the UK.

READ: Franchise Brands’ first-half profits pushed higher by Metro Rod

Franchise Brands, an international franchisor providing the same support services to a range of businesses, is acquiring 100% of Willow Pumps for an initial £5mln and a deferred consideration of up to £7.5mln, payable over the next five years based on performance.

Willow Pumps recorded revenue of £12.4mln, underlying earnings (EBITDA) of £1.6mln and a profit before tax of £1.1mln in the year ended 31 December 2018.

The water pump supply, installation and servicing business will complement the services provided by Metro Rod, a drain and care repair business acquired two years ago, at the centre of a five-year strategy.

Metro Rod, where the plan is to boost fee income four-fold by 2023, recorded 15% sales growth in the year-to-date, while last year they were up 6%.

The company will open “shortly” a new depot in Lincoln and began trading at its first Northern Ireland facility last week for Metro Rod.

Shares were up 12% to 92.05p in the early morning.

--Adds shares price--

Quick facts: Franchise Brands PLC

Price: 109.5 GBX

AIM:FRAN
Market: AIM
Market Cap: £86.85 m
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Watch

Franchise Brands' Stephen Hemsley discusses Willow Pumps acquisition

Franchise Brands PLC (LON:FRAN) executive chairman Stephen Hemsley speaks to Proactive London's Andrew Scott soon after announcing they're to acquire Willow Pumps to expand its existing drain care and repair business, Metro Rod. Hemsley says the long-term goal of bringing the brands together...

3 weeks, 4 days ago

2 min read