15th Oct 2014 06:49
LONDON (Alliance News) - Mears Group PLC Wednesday said it has struck a deal to buy social housing services provider Omega Group for up to GBP40 million.
Mears will pay an initial GBP20 million for the company, with a further GBP20 million to be paid at a multiple of 6.8 applied to average EBITDA over the 36 month period to 31 October, 2017.
Mears, the social housing and care sector support services company, said Omega has a portfolio of around 1,700 properties has a client base of 24 local authorities and housing associations, including a five-year contract to manage lettings, housing management and temporary accommodation services for Birmingham City Council.
Omega reported pretax profit of GBP2 million for the year to March 31, Mears said, on revenue of GBP15.9 million. Mears said the acquisition will be earnings neutral in 2014 but earnings enhancing in 2015.
It said the management team of Omega, previously owned by the Antoniou family, would remain with the business.
"This acquisition is a logical extension to the services provided within our Social Housing division and will enhance our ability to work with housing providers to improve the delivery of housing and property management services," said Mears Chief Executive David Miles.
By Sam Unsted; [email protected]; @SamUAtAlliance
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