leadf
logo-loader
viewFranchise Brands PLC

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: 102.24 GBX

AIM:FRAN
Market: AIM
Market Cap: £97.9 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Franchise Brands PLC named herein, including the promotion by the Company of Franchise Brands PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Franchise Brands' say priority is 'organic growth, looking after franchisees...

Franchise Brands PLC (LON:FRAN) chairman Stephen Hemsley tells Proactive London's Katie Pilbeam about year he describes as 'a year of three quarters ' the first quarter was very strong, second quarter heavily impacted by the first shutdown....... and it's been a steady recovery since...

2 weeks ago

2 min read