Acquisition of Suez Water Conditioning Services

August 28th 2018

Marlowe plc ("Marlowe" or the "Group"), the support services group focused on acquiring and developing companies that provide critical testing and maintenance services, announces that it has acquired Suez Water Conditioning Services Limited and the business and assets of Marral Chemicals and Sentinel Water (together being "Suez WCS") for an enterprise value of £4.5 million, significantly extending the scale and breadth of the Group's activities in the UK water treatment market.

Suez WCS formed part of Ondeo Industrial Solutions UK Limited, a subsidiary of Suez Environnement Company SA (“Suez”) and was established through the merger of Suez’s non-industrial UK water treatment, hygiene and chemical blending activities.

Founded in 1977 and employing approximately 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.

For the year to 31 December 2017, Suez WCS generated unaudited pro forma revenues of £13.2 million, the majority of which were contracted recurring testing and maintenance revenues, pro forma EBITDA of £0.7 million, EBIT of £0.1 million and had year-end net assets of £3.8 million. The consideration has been funded from the Group’s existing cash resources.

Alex Dacre, Chief Executive of Marlowe plc, said:

"The acquisition of Suez WCS is a further significant step in our strategy of consolidating the UK water treatment market and strengthens our position as one of the leading players. Suez WCS broadens the scope of our water treatment activities and offers attractive synergies with our existing businesses which we are confident will drive increased returns for Marlowe’s shareholders."