M&E outfit T Clarke has acquired DG Robson Mechanical Services, a privately-owned mechanical contractor, for £6.5m.
The acquisition agreement comprises an initial £1.9m in cash and the issue to the vendors of 1,451,906 new T Clarke ordinary shares of 10p each. Further payments are dependent on assets value and earnings targets being met over the next two year.
DG Robertson reported revenues of £7.7m (£5.9m in 2009) and a pre-tax profit of £1.3m (£0.8m). At 31 March 2010, DGR had net assets of £1.1m.
The contractor is based in Brentwood, Essex, and focuses on London and the south east. It has worked with T Clarke in recent years on projects such as the Westfield London retail development and the refurbishment of the media and broadcasting centre for Associated Press.
DGR has experience across a wide range of sectors, including education, transport, banking, residential and commercial developments.
T Clarke said the acquisition would help it offer clients a “total M&E solution”. Mechanical services offered by DGR include: public health services; prefabricated pipework; gas system certification; heating and ventilating insulation.
Recent and current projects include Stansted Airport extension, North Middlesex Hospital, Royal London Hospital, and the Rolls Building. In 2009 it was awarded the multi service pipe work installation for the Shard development at London Bridge.
Danny Robson, owner and managing director of DGR, along with fellow executive directors Clive Carr, Richard Exell and Andy Sofroniou, will be remaining with the business for a minimum of three years following the acquisition.
Mark Lawrence, chief executive of T Clarke, said: "We believe this is an excellent acquisition which truly complements our existing range of services. We believe that with DGR being part of the Group there is an excellent opportunity to improve our service offering and to build upon the scale and number of projects that DGR undertakes.
“In due course we expect the additional services offered by DGR to diversify and enhance the Group's earnings profile."