Family-owned heating firm sold for £5.7m
A LANCASHIRE family business that specialises in spare parts for heating systems has been sold for £5.7m.
The acquisitive BSS Group has bought Leyland-based Direct Heating Spares (DHS) in a cash deal.
DHS is privately-owned and all its shares are held by the family of managing director Graham Gough. It was established in 2005 by Mr Gough and his son Simon to supply parts to heating engineers.
In the 12 months to March 31 its earnings before interest, tax, depreciation and amortisation (EBITDA) were £1.2m on sales of £10.5m.
Graham Gough is a former director at the plumbing and heating chain Wolseley while his son is a former corporate finance adviser at PricewaterhouseCoopers in Leeds.
Simon Gough, DHS’s finance and business development director, will stay on at the firm during a handover period.
BSS, a listed distributor of parts to specialist trades, said the deal would enhance its ability to tap into the growing parts market.
Chief executive Gavin Slark said: “We are delighted to secure the acquisition of DHS. It is a high quality business and significantly enhances our customer proposition in the substantial and growing parts market.
“It is anticipated that the acquisition will be earnings enhancing in the current financial year just starting.”
In a trading update BSS, based in Leicester, said it expected underlying annual earnings, prior to exceptional costs and amortisation of intangibles, to be in line with last year.
Lawyers from Addleshaw Goddard’s Leeds office advised on the deal.
