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Thu July 18 2019

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PTSG acquires fire protection specialist

21 Jan Niche building services contractor Premier Technical Services Group has taken over Trinity Fire & Security Systems Ltd.

Premier Technical Services Group (PTSG) specialises in façade access and fall arrest equipment services, lightning protection and electrical testing, specialist building access and fire solutions.

The acquisition of Exeter-based Trinity Fire & Security Systems bolsters its presence in the fire and security systems market.  

PTSG has paid an initial £10.8m cash but Trinity comes with £3.1m of cash on its balance sheet. PTSG has also undertaken to pay a further £5m in cash or shares over the next two years, subject to performance.

Trinity generated EBITDA of £1.5m in the year to 30th June 2018 on revenue of £36.8m. Eighty percent of revenues are generated from fire services with the balance coming from security and related activities.

PTSG chief executive Paul Teasdale said: “Trinity brings with it 2,000 customers, 8,500 one-to-seven-year maintenance contracts, £24m of re-occurring revenue and an annual run rate of circa £40m, with a forecasted EBITDA of £2.2m.

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“This, combined with PTSGs already extensive customer base of over 18,000 customers, shows the potential we have in growing this business.

“Today’s announcement marks a step-change in PTSG’s growth story as we substantially enhance our leading position in fire solutions.

“Trinity is a highly complementary and attractive acquisition. Critically, it fits our clear acquisition model by presenting significant opportunities for cross-selling additional PTSG services 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.

“Trinity’s current main shareholders, including Andrew Cotton, Paul Clayton, Shaun Corbett and Rob Holliday will remain in the business to grow and expand its operations, which will be integrated into PTSG’s Fire Solutions Division.”

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