16th Jan 2020 15:58
(Alliance News) - Northern Bear PLC on Thursday said it has acquired Lister Holdings (York) Ltd and its J Lister Electrical Ltd subsidiary for a maximum of GBP1.3 million.
Shares in Northern Bear were up 5.5% at 77.55 pence in London on Thursday afternoon.
Electrical contracting business J Lister reported revenue for the year ended March 31 of GBP2.5 million and made a GBP280,000 pretax profit. The acquisition is expected to enhance building and support services firm Northern Bear's earnings.
According to Northern Bear, York-based J Lister "has an established customer base and offers significant growth potential, via both organic expansion of the existing business and cross selling with other Northern Bear group companies".
Northern Bear is to pay GBP750,000 on completion, plus deferred cash of up to GBP100,000 in two annual instalments. Upon completion, the firm will also issue 136,054 shares worth around GBP100,000.
Further payments of up to GBP300,000 cash earn-out payment may be paid, based on profit exceeding historical levels, for a total of up to GBP1.25 million. To obtain the full further amount of GBP300,000, cumulative pretax profit for the three years ending September 2022 must be more than GBP1.4 million.
J Lister is to become part of Northern Bear's Specialist Building Services segment.
Steve Roberts, executive chair of Northern Bear, said: "We have looked at a large number of opportunities since our last acquisition, being that of H Peel & Sons (Holdings) Limited and its subsidiary, in July 2017. We have now acquired a well-established, consistently profitable and cash generative business with a strong management team committed to remaining with the business. In addition, J Lister has a number of opportunities for expansion and to cross-sell with our existing group companies."
By Anna Farley; [email protected]
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