20th Jun 2019 10:24
(Alliance News) - Premier Technical Services Group PLC said Thursday it has agreed to a GBP265.3 million takeover offer from the UK infrastructure arm of Australian investment bank Macquarie Group Ltd.
Premier Technical Services provides fall-arrest equipment services, lightning protection and electrical testing.
Macquarie is offering 210.1 pence in cash for each Premier Technical Services share. On Thursday morning, Premier Technical Services' shares had more than doubled in value, rising to 209.70p each.
The stock had ended Wednesday at 87p. In 2015, when the company listed on AIM, shares traded at at 52p.
The all-cash offer represents a premium of about 72% of the company's volume-weighted average price of 122p over the past 12 months.
The offer will be put to Premier Technical Services shareholders at a general meeting, where 75% must vote in favour for the deal to be passed. The deal is expected to be completed by the end of July.
"Premier Technical Services undertook an IPO in February 2015 with a clear plan to grow both organically and through carefully selected acquisitions. Between 2015 and the last financial year ended December 2018, reported revenue and adjusted Ebitda have grown at an average annual rate of 39% and 40%, respectively. Premier Technical Services continues to have a significant pipeline of carefully identified acquisition opportunities which it would like to execute to confirm a strong position in the chosen niche specialist testing and compliance sectors in which it operates," said Chair John Foley.
He continued: "Against the backdrop of an increasingly competitive market for acquisitions, with a need to close deals quickly and fund them effectively, I believe that Macquarie's deep access to funding will better position Premier Technical Services to continue with its acquisitive growth strategy."
Premier Technical Services said Chief Executive Paul Teasdale and Managing Director Roger Teasdale have agreed to reinvest the proceeds made from the sale from their respective holdings in the company. Paul Teasdale will be reinvesting about GBP16.3 million and Roger will be reinvesting about GBP1.8 million.
On Monday this week, at the company's annual general meeting, Premier Technical Services said it has seen "continued" sales growth and "strong" levels of orders in the year to date.
The company is confident of achieving a "successful" 2019, Foley said at the meeting.