LONDON, UK: Croma Security Solutions Group (AIM:CSSG) announced that its wholly owned subsidiary, Croma Locksmiths and Security Solutions Limited, has acquired Southern Stronghold Limited for a consideration of £0.96 million.
Croma Locksmiths has acquired the entire issued share capital of Stronghold from its family owned parent company, Stronghold Trading Group Limited for a consideration of £964,569.10. The consideration comprises a cash payment of £700,000 payable on completion plus deferred consideration of £264,569.10 payable on or before 4 September 2022. The deferred consideration reflects the cash in Stronghold at completion of £124,569.10 plus additional consideration of £140,000.
Stronghold is a long-standing locksmith business that operates from two freehold premises, one in Coventry and a second near Southampton in Totton. Coventry is the larger of the operations and is a main Assa/Abloy service centre and provides a large number of Master Key systems to local businesses. Stronghold also has an on-line business “Stronghold Direct”.
For its year ended 31 March 2022 Stronghold recorded revenue of £0.5 million and a profit before tax of £39,000. Adjusting for non-recurring items the Directors believe the profits were £108,000. As of 30 June 2022, Stronghold had net assets of £0.926 million.
Croma’s strategy has been and remains to create a nationwide network of Croma Security centres. The Acquisition will extend the geographic reach of the Group and through its Coventry site provide a base from which Croma can better service, support and expand existing client relationships with those that have operations in the Midlands. The Coventry Master key systems capability and its many clients provides access to long term client relationships and reoccurring revenue.
The Totton site provides a locksmithing service to the local community and is well known in the area. Established with local authorities and some clients further afield that place their trust in Southern Strongholds long standing reputation for products and services.
Stronghold Direct” will help the Group and Croma Locksmiths to market and sell products under a different trading name on-line, an increasingly essential option for clients.
Commenting on the Acquisition, Roberto Fiorentino, CEO of Croma, said: “This is another important acquisition in our drive to improve coverage of the Croma Security Centres services. Coventry will certainly bridge a gap between the previous acquisition of Safeguard near Manchester and our other branches in the South. The business has been known to us for many years with a solid reputation that matches the Croma ethos.”