Spice snaps up engineering firm as strategy continues
SUPPORT services group Spice has continued its strategy of pursuing bolt-on acquistions after completing a deal for Cumbrian engineering services firm Agrilek.
The undisclosed sale will add £10m to Leeds-based Spice’s turnover.
Agrilek specialises in electrical contracting, power systems, renewable energy, steelwork and mechanical systems.
Spice’s chief executive Simon Rigby has previously stated the Leeds-based company’s desire to carry on an acquisition strategy which recently saw it buy ComGroup Australia – a deal Mr Rigby described as a “stonking opportunity”.
Moore and Smalley chartered accountants advised the owners of Agrilek, the Barrow-in-Furness-based firm.
Agrilek, which will receive significant investment from Spice, will continue trading under the Agrilek name and current directors Keith Wood and Ian Postlethwaite will continue to be involved in the day-to-day running of the business.
The company, which has 120 staff, will be operated as part of the Freedom Group, a provider of engineering services to the utility industry that is owned by Spice.
Keith Wood, managing director of Agrilek, said: “We are delighted to be joining Spice and particularly the Freedom Group. We see this as a truly exciting new phase in the development of Agrilek and we believe our skill base will thrive going forward, creating new opportunities in a growing market for energy engineering services.”
Agrilek’s customers include major utility and infrastructure organisations such as the Environment Agency, Powergen, United Utilities and Scottish Power along with engineering clients such as the Royal National Lifeboat Institute, James Fisher and BAE Systems.
Earlier this month, Spice reported that pre-tax profits for the year ended May 1, 2009 grew by 58% to £32.3m. Revenue rose by 24% to £386m.
