Acquisition of Guardian Water TreatmentDecember 21st 2017
Marlowe plc ("Marlowe", the "Company" or the "Group"), the support services group focused on acquiring and developing companies that provide critical asset maintenance services, announces that it has acquired Guardian Water Treatment Limited and GPCS Limited ("Guardian") for up to £2.8 million on a cash and debt free basis.
Founded in 2000, Guardian operates nationally from headquarters in Basildon, Essex, and employs around 90 staff. Guardian provides a comprehensive portfolio of water treatment services to over 400 customers with a significant presence within the facilities management, engineering and manufacturing sectors. Guardian's services are complementary to those offered by existing Marlowe businesses. The acquisition of Guardian will expand the scale of the Group's Water Treatment & Air Hygiene division, bring synergy benefits and provide additional critical mass in the London area.
For the year to 31 March 2017, Guardian reported revenues of £6.4 million, adjusted profit before tax of £0.4 million and net assets of £2 million. The total enterprise value comprises an upfront cash consideration of £2.4 million and a cash earn-out capped at £0.85 million. The acquisition will be financed from the Group's existing cash resources.
The key members of Guardian's operational management team will be staying with the business.
Alex Dacre, Chief Executive of Marlowe plc, commented:
"The acquisition of Guardian is a further significant step in our strategy of consolidation of the UK water treatment sector. The business benefits from strong recurring revenues, longstanding customer relationships and will further strengthen our capabilities in the attractive London market."
About Marlowe plc
Marlowe is an AIM-listed company formed to create sustainable shareholder value through the acquisition and development of businesses that provide critical asset maintenance services in the UK. It is focused on fire protection, security systems, water treatment and air hygiene services - which are essential to its customers' operations and invariably governed by regulation, and where customers require a single specialist outsourced provider with nationwide coverage. Our customers can be found on most high streets, in office complexes and industrial estates, and include SMEs, local authorities, facilities management providers, multi-site NHS trusts and FTSE 100 companies.