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TClarke board accepts Regent's £90m takeover offer

16 Apr The board of building services contractor TClarke has agreed to a £90.6m takeover by Regent Acquisitions Limited.

Regent has moved to take full ownership of stock market listed TClarke after building up a 21.5% stake in the contractor since 2018.

Regent Acquisitions Limited, the acquisition vehicle, is part of the Regent Group, owned by Deep Valecha and is a leading supplier of gas and metering services to industrial and commercial customers in the UK.

TClarke currently operates from 19 locations serving the whole of the UK and employs a strategy of pursuing organic growth through five core market sectors, including engineering services, technology, infrastructure, residential and hotels, and facilities management.

TClarke recently announced 15% revenue growth in 2023 to £491m, a forward order book of £943m and a profit after taxation of £6.5m (2022: £8.4m).

It is proposed that, on completion of the acquisition, Mark Lawrence and the current executive team will continue to lead TClarke. Regent said that it had no intention of making any headcount reductions or changes to the business.

The acquisition remains subject to a number of conditions, including the approval of TClarke shareholders and sanction by the court. Subject to satisfaction of these conditions, the acquisition is expected to complete in or around July 2024.

Regent chief executive Deep Valecha said: “TClarke is a business we have long admired since we started to invest in 2018. It is well run, has a strong culture helped by a commitment to a well-established apprentice scheme which offers career progression and a high degree of staff loyalty. Given our admiration for TClarke, as part of our plans, we would like TClarke to continue its business in the manner in which it has been conducted. We will support the management team in their ambitions to strengthen the balance sheet, and continue to grow the business.

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“I am excited by the opportunities this new chapter presents for TClarke to pursue its long-term strategies to drive sustainable growth and innovation and explore new initiatives.”

TClarke chairman Iain McCusker said: “After careful consideration and extensive discussions, I am pleased that the TClarke board have agreed to recommend that our shareholders accept the offer made by Regent.

“The board considers that the terms of the offer are fair and the acquisition presents an opportunity for TClarke shareholders to achieve an attractive premium to the current share price and the consideration represents a premium of approximately 31.1%. to the placing share price of 122 pence per TClarke shares on 26th July 2023.

“I would like to express my gratitude to all stakeholders and for the dedication and hard work of the TClarke plc employees whose contributions have played a pivotal role in our success so far. I am confident that together, with the support of Regent Acquisitions Limited, we will achieve even more in the years ahead.”

TClarke chief executive Mark Lawrence said: “I am pleased to share this exciting news regarding the future of TClarke. In addition to presenting an attractive premium for TClarke Shareholders, this transaction presents tremendous opportunities for the Company to chart its own course as part of a larger group with significant financial strength, flexibility and autonomy as TClarke continues to pursue its long-term strategies that will drive sustainable growth and innovation.

“This new chapter in our journey opens doors to explore bold initiatives and opportunities that may not have been feasible in the past. I am delighted that Regent understands and appreciates the strengths of the business and will be supporting our ambitions to further develop the group as we move forward.

“The acquisition will allow us to prioritise initiatives that create lasting value for our customers, employees and stakeholders. Our commitment to excellence, integrity and customer satisfaction remains unwavering.”

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