Security group extends its reach north with acquisition of locksmith

Croma Security Solutions Group plc has completed the acquisition of Meridian Securities System, a family run locksmith business based in Horsforth for a total cash consideration of £150,000.

About £135,000 of this sum is payable immediately, with a deferred element of around £15,000 payable over the first nine months.  

In a separate transaction, the company acquired a freehold retail property for a total cash consideration of £275,000 from the vendor’s pension fund.

Founded and owned by John and Kim Taylor in 2004, Meridian has been providing locksmith services and electronic security systems to the local resident and business community for over 20 years.

Operating from a single store, as well as providing an online service, Meridian has six employees of whom three are part of the Taylor family. All of them will remain with the business.

For the 12 months to 31 December 2023, Meridian generated revenues of £836,000 and profit before tax of £46,000. The net asset value of the assets acquired from the Meridian is £15,000.

Acquisition of its store extends the Croma network northwards and is in easy reach of the group’s security centre in Bury 40 miles away.

The acquisition of Meridian is part of Croma’s broader strategic plan to build a national network of modern security centres.

John Taylor, managing director of Meridian, said: “We have been looking to balance our desire to realise the value in our business whilst also continuing to work.

“Croma is therefore an ideal partner for us, they have a strong track record of incorporating similar businesses to ours into the group and they have the skills and expertise to grow Meridian, especially in the commercial market where historically we have struggled to meet demand.

“As the founder of the business and having grown it from scratch, I’m excited to continue my career as part of the Croma team.”

Roberto Fiorentino, Croma chief executive officer, added: “We are pleased to welcome Meridian into the group. The business meets all our criteria and is therefore a strong fit.

“We anticipate being able to increase the profitability of the business ensuring it quickly becomes earnings accretive and extends our geographic reach.

“As importantly, we have a good pipeline of further transactions which we are looking forward to bringing to completion.”