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GTLY Gateley (holdings) Plc

126.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Gateley (holdings) Plc LSE:GTLY London Ordinary Share GB00BXB07J71 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 126.00 125.00 127.00 126.50 126.00 126.00 143,865 11:51:31
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Legal Services 162.73M 12.24M 0.0930 13.55 165.87M

Gateley (Holdings) PLC Acquisition of The Vinden Partnership Limited (2121F)

06/03/2020 7:00am

UK Regulatory


Gateley (holdings) (LSE:GTLY)
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RNS Number : 2121F

Gateley (Holdings) PLC

06 March 2020

6 March 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

GATELEY (HOLDINGS) PLC

("Gateley" or the "Group")

AIM: GTLY

Acquisition of The Vinden Partnership Limited, Issue of Equity and Total Voting Rights

Gateley (Holdings) Plc (AIM:GTLY), the legal and professional services group, is pleased to announce the acquisition of The Vinden Partnership Limited ("Vinden"), a specialist business offering corporate advisory, dispute resolution and consultancy to the built environment in the property and construction markets, for a maximum consideration of GBP6.75m (the "Acquisition"), equating to a maximum Enterprise Value of GBP5.15m.

Vinden, which will trade under the name Gateley Vinden Limited following acquisition, strengthens Gateley's construction team, adding weight to its corporate advisory, dispute management and resolution expertise, whilst expanding its growing portfolio of complementary services.

Vinden is a well-established, profitable and cash generative business. In the year ended 31 August 2019, Vinden's revenue was GBP4.7m, generating profit before tax of GBP0.8m. Net assets at completion will not be less than GBP2.1m, including net cash of approximately GBP1.6m.

The Board expects the Acquisition to be immediately earnings enhancing.

Background to Vinden

Vinden has been operating in the property and construction markets for over 25 years. Its services include dispute management, quantity surveying, project management, bank monitoring, building surveying, sustainability, corporate services and insurance major loss reinstatement. The business has varied and extensive project experience, which covers many sectors including residential, education, affordable housing, industrial, office, retail, health and hotels and leisure.

Vinden operates from five locations, Bolton, Nottingham, Liverpool, Manchester and London. The team is 40-strong and growing, with the majority of staff based in the company's head office in Bolton.

CEO and founder, Peter Vinden, Managing Director, Chris Duffill and Directors, Andrew Crompton and Martin Bennett will remain on the Gateley Vinden management board going forward.

Acquisition rationale

The Acquisition of Vinden adds to and expands the range of dispute management and resolution services offered by the Group's construction team. It also adds real estate and construction funding services which complement the work undertaken by the Group's banking and real estate teams. The Acquisition is consistent with Gateley's growth strategy to acquire legal and professional services businesses which offer complementary specialist services, across Gateley's five business groups.

Terms of the acquisition

Under the terms of the Acquisition, Gateley has acquired the entire issued share capital of Vinden for up to a maximum consideration of GBP6.75m. The initial payment on completion will be GBP6.15m, settled 51.2 per cent. in cash and 48.8 per cent. by the issuance of 1,602,564 ordinary shares of 10 pence each in the capital of Gateley ("Ordinary Shares") at a price of GBP1.872 per Ordinary Share. The initial cash consideration will be funded from Gateley's existing banking facilities.

Deferred consideration of up to GBP0.6m is payable based on Gateley Vinden's financial performance in the year ending 31 August 2020. Deferred consideration will be settled 50 per cent. in cash and 50 per cent. in Ordinary Shares, valued at the average 10-day closing price of an Ordinary Share on the last practicable date as the deferred consideration falls due.

Issue of new Ordinary Shares

As part of the consideration payable on completion, 1,602,564 Ordinary Shares are to be issued. Application will be made to the London Stock Exchange for the 1,602,564 new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will take place at 8.00 a.m. on 12 March 2020.

The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in issue. Following Admission, Gateley's total issued share capital will comprise 117,609,094 Ordinary Shares. This number may be used by shareholders in Gateley as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of Gateley under the FCA's Disclosure Guidance and Transparency Rules.

Michael Ward, Gateley Chief Executive Officer, said:

"I am pleased to welcome the Vinden team to Gateley. This is a team we know and trust. Their results driven, client centric and inclusive culture is fully aligned with Gateley's and we are confident that the integration process will be smooth and rapid. Bringing Vinden's skills in-house strengthens and expands our corporate advisory, dispute management and resolution expertise.

"This is our ninth acquisition since we joined the AIM market in 2015. We continue to deliver on our strategy, building a strong and diversified group for the benefit of all our stakeholders - our people, our clients and our investors."

Peter Vinden, Chief Executive of The Vinden Partnership, added:

"This is a really positive move for our team and we are delighted to join Gateley. Our two companies have worked together successfully for a number of years and have a shared ethos and approach. By combining our multi-talented teams, we have an enhanced offering for clients which will bring numerous benefits for all."

Enquiries:

 
 Gateley (Holdings) Plc 
 Neil Smith, Finance Director                          Tel: +44 (0) 121 
                                                               234 0196 
 Nick Smith, Acquisitions Director and Head         Tel +44 (0) 20 7653 
  of Investor Relations                                            1665 
 Cara Zachariou, Head of Corporate Communications       Tel +44 (0) 121 
                                                               234 0074 
                                                      Mob: +44 (0) 7703 
                                                                684 946 
 
 finnCap - Nominated adviser and broker             Tel +44 (0) 20 7220 
                                                                   0575 
 Matt Goode / James Thompson (Corporate Finance) 
 Andrew Burdis (ECM) 
 
 N+1 Singer - Joint broker                          Tel +44 (0) 20 7496 
                                                                   3000 
 Peter Steel / Ben Farrow (Corporate Finance) 
 Rachel Hayes (Corporate Broking) 
 
 Belvedere Communications Limited - Financial 
  PR 
 Cat Valentine (cvalentine@belvederepr.com)           Mob: +44 (0) 7715 
                                                                769 078 
 Keeley Clarke (kclarke@belvederepr.com)              Mob: +44 (0) 7967 
                                                                816 525 
 Llew Angus (langus@belevederepr.com)                 Mob: +44 (0) 7407 
                                                                023 147 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

ACQSSWESIESSEID

(END) Dow Jones Newswires

March 06, 2020 02:00 ET (07:00 GMT)

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