9th Mar 2005 07:02
Carillion PLC09 March 2005 Carillion acquires Planned Maintenance Group Carillion plc, one of the UK's leading support services and constructioncompanies, has acquired Planned Maintenance Group Ltd (PMG) for a cashconsideration of £40 million. PMG, operating through its principal subsidiary Planned Maintenance Engineering(PME), is one of the UK's foremost independent building services and maintenancecompanies with a strong reputation for high quality services and customer care. The value of net assets acquired under the transaction is £10.6 million. In2004, PMG's unaudited turnover and profit before tax were £162 million and £4.15million, before non-recurring management fees, respectively. Earnings beforeinterest, tax, depreciation and amortisation were £4.85 million. The acquisition of PMG will immediately be earnings-enhancing and is a furthersignificant step in implementing Carillion's strategy of growing its supportservices and Public Private Partnership investment activities alongside a strongand selective construction capability. The PMG pension scheme has a net deficit of approximately £10 million. Carillionwill eliminate this deficit by funding a one-off cash contribution to thescheme. This will be in addition to the £40 million consideration and willproduce a commensurate reduction in company contributions to the scheme. PMG employs over 2,300 people, providing a range of services, includingmechanical and electrical engineering (M&E) maintenance, building fabricmaintenance and repair, facilities management and environmental services. It hasover 400 customers, including a number of "blue chip" companies, centralgovernment and local authorities and provides services to some 40,000 propertiesthroughout the United Kingdom and in Eire. Commenting, Carillion chief executive, John McDonough, said: "PMG is anexcellent strategic fit and will add good quality earnings to the Group. It willsignificantly strengthen our support services offering in our Health andBusiness Services markets. In particular, having a strong in-house M&Emaintenance capability will bring considerable benefits to new and existingCarillion customers as this is a major element in providing fully integratedservice solutions for buildings. "PMG has a strong order book with good forward visibility and well-establishedpositions in growing markets. This, together with the significant synergybenefits we expect to generate, will enhance our prospects for growth. "PMG's long and successful track record is based on its customer-focusedstrategy, which fits well with Carillion's values and culture and we alreadyhave an established relationship with PMG as one of our key suppliers. "We are therefore delighted to welcome the PMG management team and all itsemployees to the Carillion Group." Note to editors Carillion Carillion is a leading provider of integrated solutions for buildings,infrastructure and services. As a FTSE 250 company with annual turnover of some£2 billion and over 20,000 employees, Carillion delivers high-quality, costeffective and sustainable solutions using its wide range of skills andresources. Carillion's key markets are health, transport, building, facilitiesmanagement and support services for private and public sector customers.Carillion is also a leader in Public Private Partnership projects, havingfinancially closed 22 projects with a construction, maintenance and facilitiesmanagement value to the Group of £2.8 billion to date. It is also the preferredbidder for a further four PPP projects worth around £1.4 billion. Planned Maintenance Group PMG operates through two trading companies, Planned Maintenance Engineering(PME) and Building Environmental Hygiene (BEH). It has 1,200 people located atPMG offices and customers' premises, with a further 1,100 mobile techniciansoperating from a network of 15 service centres, providing a 24-hour calloutservice for other customers throughout the UK and the Republic of Ireland. Inaddition to providing hard and soft FM services, including M&E maintenance,building fabric maintenance and repair, the group provides environmental hygieneservices and advice for water hygiene, water treatment, electrical and cateringmaintenance. Its key customers include Royal Bank of Scotland, Deutsche Bank, Reuters, UBS,Linklaters Prudential Assurance, The Department of the Environment, Food andRural Affairs, the Driver Vehicle Licensing Agency, Manchester Police, GCHQ,Plymouth, Torbay and Hampshire Councils. For further information contact Chris Girling Finance Director 01902 422431 John Denning Director Group Corporate Affairs 01902 316426 High resolution photographs are available, free of charge, to the media atwww.newscast.co.uk Telephone 0207 608 1000. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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