Franchise Brands completes £28m Metro Rod acquisition

AIM-listed Franchise Brands’ £28m acquisition of Metro Rod, a drainage clearance and maintenance company, completed on Tuesday.

The acquisition was part funding from an equity placing of shares worth 67p each to raise £20m with balance funded from new bank facilities.

The new 47.33m shares were admitted to trade on AIM on Tuesday and the company's issued share capital now consists of 77.73m shares with voting rights and none held in issue.

Executive chairman Stephen Hemsley said: "I am delighted to announce the completion of the acquisition of Metro Rod, which represents a transformational step in respect of implementing the group's stated buy and build strategy."

Shares in Franchise Brands were up 2.99% to 96.30p at 0944 BST.