LONDON: Mears Group PLC, the leading provider of housing services to the public and regulated sectors in the UK, has acquired 100% of the share capital of Pennington Choices Group Limited (PCL) for a total cash consideration of £9.5m settled in full on completion and financed from existing cash resources.
The business is acquired on a debt and cash free basis, with a normal level of working capital.
Based in Warrington, PCL was established in 2000 by the former majority shareholder Mark Seaborn and employs around 150 people. Mark will remain with the business following completion to ensure a smooth transition and integration into the wider Group.
PCL has a strong reputation in the social housing market delivering a range of Compliance activities, including but not limited to stock condition surveys, fire risk assessments, energy performance certification, asbestos testing and consultancy services. Mears estimates that PCL will deliver revenue and adjusted EBITDA (post-synergies) of £17.0m and £1.5m respectively, and be earnings accretive, in its first full year in the Group.
A key component of the Group’s strategy is developing its Compliance and Asset Management service offering. The housing compliance market is fragmented, largely single service led, and presents a significant growth opportunity. The PCL acquisition extends Mears’ capabilities in this area, strengthening its well-rounded, holistic service offer and accelerating progress in a key component of the Mears strategic plan.
Lucas Critchley, Chief Executive Officer of the Group, commented: “Mears has made solid progress in developing its systems and front-line capability to deliver Compliance services. Pennington Choices’ core competencies in professional and technical services are complementary to Mears’ existing offer and this acquisition will accelerate our progress in the attractive and growing Compliance space.
“In addition to the strategic fit, importantly, we also see a strong cultural alignment between both organisations, particularly in terms of the emphasis given to the investment in, and development of, our respective teams, and I am excited to welcome the employees and customers of Pennington Choices to the Group.”