Insolvency expert swoops for transport specialist

Begbies Traynor has announced the acquisition of MMXI Limited, which trades as Croft Transport Planning & Design, in a deal worth up to £4m.

The 10-strong Manchester-based team, including management, will be integrated with the group’s existing Eddisons property services division.

Croft was established in 2010 by its existing management and the business provides highways, transport and traffic advice on commercial, residential and mixed use schemes to a corporate client base, which includes developers, house builders and land owners.

In line with Begbies’ strategy, the acquisition will strengthen the Eddisons professional services business, through expanding the consultancy services offered to real estate developers and corporate clients.

In the financial year ended September 30, 2018, Croft reported annual revenue of £1.8m and pre-tax profits of £700,000, when reported on the same basis as the group. It had gross assets of £2.2m.

The acquisition is for an initial consideration of £1.5m, to be satisfied by £1.125m in cash from the group’s existing resources and through the issue of 640,150 new ordinary shares of 5 pence each. The acquisition is on a cash free, debt free basis.

Under the terms of the acquisition, up to £2.5m will become payable subject to the achievement of stretching financial targets for the business in the five-year period directly following completion.

Any additional consideration is calculated according to an agreed formula and is payable in cash.

The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.

Anthony Spencer, director at Eddisons, said: “I am very pleased to welcome the Croft team into Eddisons. The acquisition will enhance our professional services business, through widening the range of our specialist consultancy services and increasing the number of our clients.

“This is our fourth Eddisons acquisition since we joined the group and we continue to seek opportunities for further growth, both organically and by strategic acquisition.”

Begbies Traynor executive chairman Ric Traynor said: “The acquisition of Croft is in line with our strategy to develop our property services division, by increasing both the scope of its service offering and geographical coverage.

“Croft has excellent relationships with a broad range of clients, which have been developed by providing a consistently high quality, specialist and professional service over many years.”

Leading independent legal practice Brabners acted on behalf of Eddisons and Begbies Traynor.