Clarke Telecom sold in £17m deal
OLDHAM-based Clarke Telecom has been acquired in a £17m deal by Yorkshire engineering group Renew.
The business, owned by the Clarke family and management, specialises in installing and maintaining phone masts used by mobiles and other wireless devices.
It has 200 staff and recorded operating profits of £3.5m on sales of £32.9m in the year to the end of October. The management team will stay with the business.
Clarke Telecom was previously part of the Liverpool-based private-equity-backed Clarke Energy Group.
Jamie Clarke, chief executive of Clarke Energy and previously business development director for Clarke Telecom said: “We are pleased with the success that Clarke Telecom has delivered over the past 14 years. The company has grown into a leading supplier of mobile telecommunications infrastructure.
“We are confident that Renew Holdings will be the right owner of Clarke Telecom and will be a supporting partner for their staff and management. The team at Clarke Energy moves forward and will focus on our core gas to power business.”
Leeds-based Renew said £11.9m of the total consideration was paid yesterday and a further £5.1m will be paid at the end of May. It has been funded from the group’s cash resources and a £12m loan from HSBC.
Roy Harrison, chairman of Renew, said: “This earnings enhancing acquisition accords with the group’s clear strategy of growing its engineering services business, where it can secure strong framework positions with major clients in sustainable markets supporting critical UK infrastructure. Clarke Telecom is a leader in a field which is enjoying strong structural growth and broadens Renew’s activities in the infrastructure market.”
The deal was managed on behalf of HSBC by senior corporate banking manager Neil Abbott, alongside Addleshaw Goddard as legal advisors. Renew was advised by Walker Morris, led by Debbie Jackson, and Spark Advisory Partners, led by Sean Wyndham-Quin.
Clarke Energy was advised by partner Jonathan Boyers of KPMG corporate finance in Manchester, while vendor due diligence was provided by Deloitte Manchester’s Jodi Birkett and Paul Leather.
