LONDON (Alliance News) - Specialist services firm Premier Technical Services Group PLC said Thursday its acquired M&P Fire Protection Ltd for up to GBP3.5 million.
Premier will pay an initial GBP1.0 million cash payments. The remaining GBP2.5 million payments will be paid over the following five years subject to the business "achieving stretching and escalating milestone profitability targets."
The deferred payments can be made in either cash or shares at the discretion of Premier.
"We are delighted to welcome M&P as our latest addition to the group," Premier Chief Executive Officer Paul Teasdale said. "The business is well established and respected in the UK, their addition to the group extends our service offering in Fire Solutions, particularly in London and the South East and complement our existing extensive offering as the UK's largest niche specialist service provider."
For the year ended March 2017, M&P - which installs and maintains sprinkler, dry and wet riser systems - generated pretax profit of GBP200,000 on revenue of GBP2.1 million.
For comparison, in 2017 Premier generated pretax profit of GBP1.8 million on revenue of GBP52.9 million.
Premier added that the senior management at M&P - Paul Atkins and Michael Thackray - will remain at the business.
Shares in Premier were 2.4% higher at 194.50 pence on Thursday.