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Marlowe to purchase Ductclean
Posted on Friday, 14 July 2017 11:13
Marlowe has signed on the dotted line to pick up UK ventilation maintenance company Ductclean UK for about GBP 17.46 million.
The consideration comprises GBP 4.00 million in cash and up to GBP 3.46 million in shares, with the business currently holding GBP 7.50 million of debt.
An additional GBP 2.50 million earn-out will be issued if certain performance-based targets are achieved.
Chief executive of Marlowe, Alex Dacre, stated: "The acquisition of Ductclean significantly extends the scope of the group's activities into a new complementary service sector with strong recurring revenues and where growth is driven by stringent health and safety regulation.”
Following completion, which is subject to shareholder approval, the deal will broaden the buyer’s capabilities and create a third complementary division in air hygiene.
Established in 1998, Ductclean claims to be a UK market leader in ventilation maintenance, ductwork cleaning and management, kitchen extract cleaning and contamination remediation services.
In the 12 months ended 30th September 2016, the company posted revenue and earnings before interest, tax, depreciation and amortisation of GBP 16.70 million and GBP 1.80 million, respectively.
In a separate deal, Marlowe announced an equity dilution worth up to GBP 10.00 million in order to finance the acquisition and repay its debt.
The firm is placing roughly 2.60 million stocks at GBP 3.85 apiece.
London-listed Marlowe provides fire protection, security systems, water treatment and air hygiene services.
The company posted revenue and a net profit of GBP 46.80 million and GBP 3.50 million, respectively, in the 12 months ended 31st March 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 82 deals targeting plumbing, heating and air conditioning contractors announced worldwide since the beginning of 2017.
The largest of these was Reliance Worldwide’s USD 92.50 million acquisition of US firm Securus in June.
Airmaster Corporation, Florida Gas Contractors and Greenspread Warmte, among others, have also been targeted so far this year.
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