LONDON (Alliance News) - Niche specialist services provider Premier Technical Services Group PLC on Tuesday said it has agreed to acquire UK Dry Risers Ltd and UK Dry Risers Maintenance Ltd for a combined GBP5.6 million.
Premier Technical will acquire UK Dry Risers for up to GBP2.1 million, comprising a GBP1.2 million upfront payment, a fixed deferred payment due on the first anniversary after completion and the balance due based on the company hitting targets in the 12 months after the deal.
UK Dry Risers specialises in installing dry and wet riser systems, components used in fire-suppression systems which are designed into most high-rise commercial and residential buildings in the UK. The risers are used to distribute water throughout all levels of the buildings in the event of a fire.
Premier Technical will then pay up to GBP3.5 million for UK Dry Risers Maintenance, a tester, repairer and maintainer of dry and wet risers.
This will cover an initial GBP1.8 million, five fixed deferred payments due annually over the five years following completion, and the balance based on the company hitting performance targets over those five years.
Both businesses will be integrated into Premier Technical Services' Electrical Services division.
"We warmly welcome UKDR and UKDRM to the PTSG Group. Both businesses are well established and respected in the UK and their addition to the Group expands our service offering into new niche markets," said Premier Technical Chief Executive Paul Teasdale.
Premier Technical shares were up 1.3% to 77.00 pence Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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