Marlowe PLC Acquisition of Guardian Water Treatment Limited (0029A)

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RNS Number : 0029A

Marlowe PLC

21 December 2017

21(st) December 2017

Marlowe plc

Acquisition of Guardian Water Treatment Limited

Marlowe plc ("Marlowe", the "Company" or the "Group"), the support services group focused on acquiring and developing companies that provide critical asset maintenance services, announces that it has acquired Guardian Water Treatment Limited and GPCS Limited ("Guardian") for up to GBP2.8 million on a cash and debt free basis.

Founded in 2000, Guardian operates nationally from headquarters in Basildon, Essex, and employs around 90 staff. Guardian provides a comprehensive portfolio of water treatment services to over 400 customers with a significant presence within the facilities management, engineering and manufacturing sectors. Guardian's services are complementary to those offered by existing Marlowe businesses. The acquisition of Guardian will expand the scale of the Group's Water Treatment & Air Hygiene division, bring synergy benefits and provide additional critical mass in the London area.

For the year to 31 March 2017, Guardian reported revenues of GBP6.4 million, adjusted profit before tax of GBP0.4 million and net assets of GBP2 million. The total enterprise value comprises an upfront cash consideration of GBP2.4 million and a cash earn-out capped at GBP0.85 million. The acquisition will be financed from the Group's existing cash resources.

The key members of Guardian's operational management team will be staying with the business.

Alex Dacre, Chief Executive of Marlowe plc, commented:

"The acquisition of Guardian is a further significant step in our strategy of consolidation of the UK water treatment sector. The business benefits from strong recurring revenues, longstanding customer relationships and will further strengthen our capabilities in the attractive London market."

For further information:

 
 Marlowe plc                   www.marloweplc.com 
 
 Alex Dacre, Chief Executive   Tel: [phone] 
                                6194 
                               [e-mail] 
 
 Cenkos Securities plc (Nominated Adviser and Broker) 
 
 Nicholas Wells,               Tel: [phone] 
  Elizabeth Bowman 
 
 FTI Consulting 
 
 Nick Hasell                   Tel: [phone] 
 Alex Le May 
 

About Marlowe plc

Marlowe is an AIM-listed company formed to create sustainable shareholder value through the acquisition and development of businesses that provide critical asset maintenance services in the UK. It is focused on fire protection, security systems, water treatment and air hygiene services - which are essential to its customers' operations and invariably governed by regulation, and where customers require a single specialist outsourced provider with nationwide coverage. Our customers can be found on most high streets, in office complexes and industrial estates, and include SMEs, local authorities, facilities management providers, multi-site NHS trusts and FTSE 100 companies.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 21, 2017 02:00 ET (07:00 GMT)