LONDON (Alliance News) - Bilby PLC on Thursday said it has agreed to acquire two further companies and completed a share placing to back the deal.
Bilby, a holding company for gas heating, electrical and heating services companies, said it will pay GBP8.7 million to acquire Spokemead Maintenance Ltd. Spokemead provides electrical installation, repairs and maintenance services to local authority-owned housing, Bilby said, and has a major contract in place with an unnamed London Borough.
Bilby will pay an upfront GBP5.7 million in cash and issue 423,729 shares to cover another GBP500,000 of the initial consideration. The balance will be paid subject to Spokemead achieving performance targets through to 2019.
Bilby will also acquire DCB (Kent) Ltd for GBP4.0 million. DCB provides building, refurbishment and maintenance services to housing associations and local authorities in Kent, Sussex, Essex and London.
It will pay GBP1.5 million in cash for DCB and issue another GBP423,729 shares to cover the other GBP500,000 of the initial consideration. The other GBP2.0 million will be paid over three years dependent on DCB meeting performance targets.
The two acquisitions will expand Bilby's service offering and broaden its customer base and reach in London and the south east of England.
Bilby also has raised GBP5.0 million through the placing of 4.2 million shares at 118.00 pence per share to cover the initial cash considerations on the two acquisitions. Bilby shares were down 0.5% to 120.92p on Thursday, having risen to 127.90p at the open in London.
"With their strong management, both businesses have long-established reputations for delivering high levels of service. Furthermore these acquisitions will further enhance Bilby's ability to tender for larger-scale contracts," said Phil Copolo, deputy executive chairman of Bilby.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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