T Clarke has bought Lancashire-based privately owned facilities management business D&S Engineering Facilities for £11.6 million.
The announcement came as T Clarke revealed its 2009 profit had halved due to bad debts and restructuring costs.
D&S Engineering provides a wide range of facilities management services to a blue-chip UK client list.
It is based in Accrington, Lancashire and employs 150 people.
For the year ended 30 September 2009, D&S Engineering reported turnover of £16.6 million and a pre-tax profit of £0.5 million after approximately £1 million of non-recurring private company costs. As at 30 September 2009 it had gross assets of £9.3 million and net assets of £3.3 million.
Under the terms of the acquisition agreement, T Clarke has paid an initial cash consideration of £10.6 million, with an additional £1 million payable, in the event of certain asset and cash targets being met in the completion accounts.
The acquisition is part of T.Clarke’s strategy to broaden its range of services to provide its customers a comprehensive offering in a new market sector.
D&S Engineering focuses on the maintenance and care of its customer’s buildings and engineering activities, principally in the North West of England.
Ivan Bland, Clive Jackson and Keith Gaylor, the three executive directors of D&S Engineering, have committed to remain with the company for a minimum of at least three years after completion.
T Clarke chief executive Mark Lawrence said: “We are delighted to announce this significant acquisition, which firmly establishes T Clarke in the facilities management market. D&S Engineering is a first class business with an enviable reputation. It has a very good client base of long-standing.
“I am confident that it will integrate well with the rest of the T Clarke group. We believe that there is an excellent opportunity to build the scale of its facilities management operations and roll these out across the UK.
“Given our existing strong client relationships, we are excited about the potential that there is for opportunities to provide a wider scope of services.
“This acquisition represents an important strategic development for us which will diversify and strengthen our earnings profile. We welcome the D&S Engineering team and I am confident that the business will prosper as part of the larger T Clarke group.”