Marlowe PLC Acquisition of Alarm Communication Limited (2757A)

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RNS Number : 2757A

Marlowe PLC

01 June 2021

1 June 2021

Marlowe plc

Acquisition of Alarm Communication Limited ("ACL")

Marlowe plc ("Marlowe" or the "Group"), the UK leader in business critical services and software which assure safety and regulatory compliance, announces that it has acquired ACL, a provider of fire safety and security services, for an enterprise value of up to GBP7.3 million.

Founded in 1984, ACL is based in Surrey and employs approximately 80 staff. The acquisition provides attractive synergies with Marlowe's testing, inspection and certification activities.

For the year ended 30 April 2020, ACL generated a profit before tax adjusted for non-recurring shareholder costs of GBP1.2 million and a statutory profit before tax of GBP0.6 million on revenues of GBP10.7 million. Net assets at 30 April 2020 were GBP0.8 million. The total enterprise value will comprise an upfront cash consideration of GBP6.0 million in addition to performance-related contingent consideration of up to approximately GBP1.3 million following the first year of ownership. The acquisition will be funded from Marlowe's existing cash resources.

Alex Dacre, Chief Executive of Marlowe plc, said:

"The acquisition of ACL marks another significant milestone in the development of our fire safety & security strategy. Following Marlowe's first acquistion of Fire & Security Group in 2016, a number of bolt-on acquisitions and strong organic growth, our fire safety & security business now generates run-rate revenue of over GBP100 million. We look forward to the contribution that ACL will make to our continued growth in this market."

For further information:

 
Marlowe plc                                    www.marloweplc.com 
Alex Dacre, Chief Executive             Tel: [phone] 
Mark Adams, Group Finance Director              [e-mail] 
 
Cenkos Securities plc (Nominated Adviser 
 and Joint Broker) 
Nicholas Wells                              Tel: [phone] 
Ben Jeynes 
 
Berenberg (Joint Broker) 
Ben Wright                                       Tel: [phone] 
                                                  7800 
Mark Whitmore 
 
FTI Consulting 
Nick Hasell                                      Tel: [phone] 
                                                  1340 
Alex Le May 
 
 

About Marlowe plc

Marlowe is a UK leader in business critical services and software which assure safety and regulatory compliance. The company was formed to create sustainable shareholder value through the acquisition and development of businesses that provide regulated safety and compliance services. It is focused on health & safety, compliance software, employment law & HR compliance, fire safety, security, water treatment & air hygiene and occupational health services - all of which are vital to the wellbeing of its customers operations and are invariably governed by regulation. Marlowe currently provides services to over 15% of Britain's commercial premises and is increasingly attractive to customers who require a single outsourced, nationwide, provider of a comprehensive range of regulated compliance and safety services. Our customers can be found in most office complexes, high streets & leisure facilities, manufacturing plants and industrial estates, and include thousands of SMEs, local authorities, facilities management providers, multi-site NHS trusts and FTSE 100 companies.

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June 01, 2021 02:00 ET (06:00 GMT)