Galliford Try Holdings PLC (LSE:GFRD) has agreed to acquire MCS Controls Systems to bolster its environmental and water business.
The company detailed the acquisition - for which it is paying a nominal £1 fee – of Coventry-based MCS, which has 81 employees.
It told investors in a stock market statement that MCS is “an excellent fit” and the deal is consistent with the firm’s sustainable growth strategy. MCS's capabilities are complementary to its expanding environment business and also complements the previously acquired NMCN and Lintott Control Systems businesses, it added.
“I am delighted to welcome the employees, clients and suppliers of MCS to Galliford Try,” said Galliford chief executive Bill Hocking.
“This acquisition is an excellent strategic fit with our enlarged water business, brings highly complementary capabilities into the group and advances our sustainable growth strategy."
MCS generated some £10.1mln of revenue in 2020 (its most recent published financial results) to incur a £500,000 loss and at that time it had £2mln of net assets.
In order to acquire the business for the nominal £1, Galliford is to fund certain contractual liabilities incurred prior to the completion date of the acquisition to strengthen MCS's balance sheet and provide additional operational stability.