T Clarke has acquired privately owned mechanical services and public health contractor DG Robson Mechanical Services for a total consideration of £6.15 million.
The M&E contractor will initially pay £1.875m in cash and issue 1,451,906 new T Clarke shares worth 10 pence each.
Further considerations of up to £1.5m and £775,000 in cash will become payable, subject to earnings targets being met in the two years to 24 August 2012.
For the year ended 31 March 2010, Brentwood-based DG Robson posted revenues of £7.7m - up from £5.9m at 31 March 2009 - and a pre-tax profit of £1.3m compared to £0.n in the previous financial year.
DG Robson works across a wide range of sectors - including education, transport, banking, residential and commercial – carrying out heating and ventilation and pipework installations as well as gas system certification.
It is the subcontractor responsible for pipe work installation on the Shard development at London Bridge, which when completed in 2013, will be London’s tallest building at 306m.
The present owner and managing director of DGR, Danny Robson along with fellow executive directors Clive Carr, Richard Exell and Andy Sofroniou will be remaining with the business for a minimum of three years following the acquisition.
T Clarke chief executive Mark Lawrence said: “We believe this is an excellent acquisition which truly complements our existing range of services. We believe that with DGR being part of the group there is an excellent opportunity to improve our service offering and to build upon the scale and number of projects that DGR undertakes. In due course we expect the additional services offered by DGR to diversify and enhance the group’s earnings profile.”