Premier Technical Services gobbles up UK Sprinklers
(ShareCast News) - Niche specialist services provider Premier Technical Services Group announced on Tuesday that it has extended its fire safety solutions business to encompass the installation and maintenance of sprinkler systems through the acquisition of UK Sprinklers.
The AIM-traded firm said UKS, based in Bury, is a specialist in the installation of sprinkler systems.
It was acquired for a total consideration of up to £2.5m, comprising an initial cash payment of £1.3m, two fixed deferred cash payments of £0.1m payable on the first and second anniversaries of completion and a contingent payment of £1.0m payable over three years, subject to the business achieving "stretching and escalating" milestone profitability targets in each of those periods.
The deferred consideration could be paid in cash or shares at the sole option of PTSG.
Unaudited revenue at UKS for the year to 31 January 2017 was £3.5m, delivering a profit before tax of £0.8m, with unaudited net assets on the same date of £0.7m.
The businesses would be integrated into PTSG's Fire Solutions business, the board confirmed.
Mike Charlton and Steven Griffiths of UKS would remain with the group and work with PTSG's management team to grow and expand the acquired business.
"We warmly welcome UKS to the PTSG group," said PTSG CEO Paul Teasdale.
"The business is well established and respected in the UK and their addition to the group expands our service offering in our Fire Solutions business.
"We look forward to working with Mike and Steven and their colleagues on growing the business and expanding the group's activities in these key areas."