Double deal for fire protection firms
SERVICES provider PTSG has acquired two fire protection installation companies in the North West in deals worth a combined £3.6m.
The first, a Bury-based business, UK Dry Risers, installs riser systems, mandatory components of fire-suppression systems in commercial buildings, which distribute water in the event of a fire.
An initial payment of £1.2m will be added to a deferred payment of £50,000 on the first anniversary of completion and a maximum of £86,000 subject to the business achieving profitability targets.
UKDR reported revenues of £3m for the year ended 31 March 2016, delivering a pre-tax profit of £700,000.
Castleford-headquartered PTSG has also acquired UKDRM, a tester, repairer and maintainer of dry and wet riser systems, based in Oldham, for £3.5m. This also includes deferred payments on the first anniversary of the acquisition.
Unaudited revenue of UKDRM was £1.1m for the year ended 30 November 2015, with pre-tax profits of £400,000.
Both businesses will be integrated into PTSG’s Electrical Services Division. Mike Charlton of UKDR and Daniel Hardman and Claire Spencer-Hardman of UKDRM will remain with the group and work with PTSG’s management team to grow and expand the acquired businesses.
Paul Teasdale, chief executive of PTSG, said: “We warmly welcome UKDR and UKDRM to the PTSG Group. Both businesses are well established and respected in the UK and their addition to the group expands our service offering into new niche markets.
“The acquisitions are expected to be immediately earnings enhancing for the group.”
