13th Jul 2015 16:05
LONDON (Alliance News) - Bilby PLC Monday said it has bought property services business Purdy Holdings Ltd for GBP8.1 million in a cash and shares deal.
Bilby, which is the holding company for gas heating and building services provider P&R Installation Co Ltd, said it will make an initial cash payment of GBP6.6 million and will issue 1.3 million shares at 80 pence each, as well as a GBP0.5 million convertible loan note for the purchase of Purdy.
Shares in Bilby closed down 5.2% on AIM at 80.60p on Monday.
Bilby said the acquisition has been funded through a new term loan of GBP4.2 million and a mortgage loan of GBP570,000, together with a share placing to raise a further GBP3 million.
Bilby planned to issue 3.7 million new shares in the placing, also at 80p per share. However, it was over-subscribed, so 1.5 million shares from existing shareholders also were sold at the same price, it said.
Essex-based Purdy reported a consolidated group revenue of GBP14 million in 2014 and an adjusted pretax profit of GBP411,000.
"Bilby PLC joined the AIM market with a buy and build strategy, and the acquisition of Purdy is a perfect fit. Critically it enables us to tender for larger contracts, whilst broadening the company's service offering as well as providing a number of opportunities to drive customer and procurement synergies. I have been impressed by the quality, energy and vision of the management team at Purdy, and I look forward to working with them to further develop and grow both their and the Bilby business," Deputy Chairman Phil Copolo said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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