Acquisitions

Our growth, since our foundation in 2015, has been accelerated by twenty-four acquisitions to date (2019). These acquisitions have been of businesses that have had revenues of between £500,000 and £30m and have been for enterprise values of between £200,000 to over £30m. It is our intention to continue our growth both organically and through further acquisitions in the years to come. 

Should you be interested in discussing a particular opportunity with us, please get in touch - initially by email to  acquisitions@marloweplc.com - with a brief introduction to the opportunity. We endeavour to respond within a few days. Any correspondence or discussions will be treated in strict confidence.

 

 

  • We are an AIM-listed company with access to significant financial resources. Our strategy to create shareholder value is based on organic growth boosted by targeted acquisitions. 
  • We believe in giving acquired companies a significant degree of entrepreneurial independence and autonomy within a decentralised management structure.

Marlowe Plc is actively looking to acquire across our core business areas:

  • Health & Safety: H&S services across the built environment (audits, consultancy, risk assessments etc.).
  • Fire Safety: Focusing on servicing and maintenance. Particularly interested in fire alarms, fire risk assessments, extinguishers, sprinklers & suppression systems and dry risers.
  • Water safety: Legionella control, water treatment applications, chemical blending, engineering and repairs.
  • Air Quality: Mainly focussed on asbestos consultancy (surveying, testing and inspection) and ventilation hygiene & ductwork cleaning.
  • Other related services: adjacent service sectors which enjoy the same channel to market and, ideally, benefit from some form of regulation. We acquire both stand-alone businesses and 'bolt-ons'.

Our Investment Focus:

  • Critical services: We focus on B2B service sectors which provide essential services, where demand is driven by regulation. The mission critical nature and switching costs of these services can result in customer stickiness.
  • Recurring revenues: A large proportion of our revenues recur periodically from year to year and derive from long-term, durable customer relationships. These revenues allow for good forward earnings visibility.
  • Operational complexity: We focus on service sectors which are technical, specialist and operationally complex to deliver. These services command attractive margins thanks to the value they add to our customers’ operations.
  • Economies of scale: We favour service sectors in which scale can generate enhanced efficiencies for our customers and returns for our shareholders.
  • Strategic fit: We build our Group upon businesses which fit well together and share a similar channel to market. This provides our businesses with an automatic advantage gained through our ability to share customer relationships across the Group.
  • Fragmented markets: We focus on markets which are fragmented which we believe exhibit characteristics that lend themselves well towards industry consolidation. As we inject pace and build market share through add-on acquisitions and investment in organic growth, barriers to entry grow.

We would like to hear from you if you are/are selling a UK focused business with revenues in excess of £0.5m and are:

  • Planning a retirement sale, complete or partial exit from your business.
  • An ambitious entrepreneur or management team of an established businesses operating in the UK business services sector looking for investment to accelerate your growth.
  • In a strong market position regionally or nationally with established operations in non-cyclical market segments.

We can offer:

  • The opportunity for both operational improvements and economies of scale.
  • The benefit of being part of a listed company which provides access to further investment and the flexibility to take advantage of further opportunities.
  • We have significant acquisition funds readily available.
  • Our status as an AIM listed company enables us to structure a wide variety of deals to suit diverse shareholder circumstances.
  • A wide range of enterprise values from £0.2m to £50m+ or revenues from £0.5m to £50m+.

Track Record:

William Martin (Dec 2018): Acquired for an implied enterprise value of £30m. Formed in 2004, William Martin is a leading technology-enabled UK provider of property-related health and safety audit and consultancy services. It provides consultancy to a range of commercial customers across the UK in areas such as H&S, fire safety, water safety and asbestos management.

  • Through providing consultancy services integrated with Meridian, its proprietary software platform.
  • For the year to 30 April 2018, William Martin generated revenues of £7.5 million, EBITDA of £2.3 million at a margin of approximately 30%.
  • http://www.marloweplc.com/news/rns/id/155

 

Tersus (Oct 2018): Acquired for an enterprise value of £3.7m. Formed in 1986, Tersus provides testing and inspection services to a wide range of clients in both the private and public sectors, mainly focused on managing the risk of asbestos. Tersus, which employs approx. 180 staff, is headquartered in Rainham, Essex, and operates nationally from eight sites, each with its own laboratory.

 

Suez WCS (Aug 2018): Acquired for an enterprise value of £4.5m. Founded in 1977 and employing approx. 170 staff, Suez WCS operates nationally from its headquarters in Daventry and provides water treatment and hygiene services across a broad range of sectors. In addition, the business produces certain chemicals used in water treatment applications.

 

BBC (Feb 2017): Acquired for an enterprise value of £4.1m. Founded in 1979, BBC operates nationally from headquarters near Norwich and employs around 100 staff. BBC provides a comprehensive portfolio of fire protection services to over 700 customers with a significant presence in the retail, banking, education and social housing sectors. BBC's services are highly complementary to those offered by existing Marlowe businesses.