£20m placing for PTSG as it swoops for Sheffield-headquartered business
Specialist services provider PTSG has announced a proposed acquisition of a Sheffield-headquartered electrical testing and compliance firm – for which it is successfully completed a £20m share placing.
The listed Castleford-headquartered firm is to acquire Guardian Electrical Compliance, which operates nationally, for an initial cash consideration of £12m. A deferred consideration of up to £4m is also payable over the next three years, in cash or shares at PTSG’s discretion, subject to Guardian meeting stretching performance targets.
Guardian will be acquired with £1m of cash on its balance sheet. PTSG also successfully conducted a non-pre-emptive cash placing to raise gross proceeds of £20 to fund the acquisition, associated costs and to support future acquisitions. This includes the upcoming acquisition of a Fire Solutions company – expected to complete by year end.
Paul Teasdale, CEO of PTSG, said: “Today’s announcement marks a step-change in PTSG’s growth story as we substantially enhance our leading position in Electrical Services and demonstrate our intent to expand further our Fire Solutions business to meet the unprecedented customer demand.
“Guardian is a highly complementary and attractive acquisition. It has an exceptional growth track record, management team and large blue-chip customer base. Critically it fits our clear acquisition model by presenting significant opportunities for cross-selling additional PTSG services as well margin improvement whilst supporting our long-term goal of sector dominance.
“The transaction also reflects our determination to grow further our revenues from compliance related services that now stand at record levels. Furthermore, we believe Guardian’s proprietary software is unique in the market and, when combined with our own in-house platform, Clarity, will provide our customers with a highly advanced and compelling compliance solution.
PTSG said the deal would enhance PTSG’s strong presence in the electrical safety services market. Guardian has a proven track record of achieving strong growth rates, with 5 year CAGR in revenue and adjusted operating profit of 22% and 36% respectively; attractive adjusted operating profit margin of 22%, in line with PTSG.
“As a national provider of electrical safety services focused purely on testing and compliance services, the acquisition is wholly aligned with PTSG’s stated strategy of continuing to increase its revenues from compliance related services,” added PTSG.
In 2017, PTSG made a trio of acquisitions.
