10th Oct 2019 13:07
(Alliance News) - Tekmar Group PLC on Thursday said it has agreed to buy Pipeshield International Ltd - a subsea concrete provider - for GBP6.5 million in cash and shares from its founder Steven Howlett.
The mattress protection systems provider said Howlett will remain as managing director of Pipeshield. For 2018, Pipeshield delivered revenue and pretax profit of GBP6.6 million and GBP800,000, respectively.
Tekmar said the acquisition offers an opportunity for its Energy division to extend the number of protection products it offers to existing customers for offshore projects.
The acquisition consideration will be satisfied via GBP3.0 million in cash and GBP750,000 through the issue of 573,833 new shares to Howlett on completion, plus deferred cash payments of GBP1.5 million in April 2020 and GBP1.3 million in October next year. The consideration is fixed and not subject to any working capital adjustments, Tekmar said.
The stock was trading 0.9% lower on Thursday in London at 141.25 pence a share.
"Pipeshield is a perfect fit for Tekmar. Its products are complementary, allowing us to upsell and expand our offering to clients, realising our group vision," said Tekmar Chief Executive James Ritchie.
"I am truly excited by the prospect of adding the Pipeshield offering to Tekmar's portfolio and I welcome Steve and his team to the family," added Ritchie.
By Evelina Grecenko; [email protected]
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