Marlowe buys BBC Fire Protection for up to £8.3m

(ShareCast News) - Marlowe, which buys and develops maintenance services providers, has bought BBC Fire Protection for up to £8.3m on a cash and debt free basis.The AIM-listed company believes that the acquisition will expand the scale of its fire division, offer synergy benefits and provide additional critical mass and route density in different geographical regions, and increase its customer base and recurring revenues.The company also thinks that BBC Fire Protection would extend Marlowe's market position to become one of the four largest providers of fire protection services in the UK as well as immediately enhance its earnings.The total consideration for the acquisition is £8.3m, which includes £4.2m of cash held by BBC Fire Protection and a long leasehold property valued at about £500,000. The acquisition will be financed from the Marlowe's existing cash resourcesFor the year ended 31 December 2015, BBC Fire Protection generated £9.1m of revenue, earnings before interest, tax, depreciation and amortisation (EBITDA) of £1m and a pre-tax profit of £600,000.At the end of November 2016 BBC Fire Protection had assets worth £5.9mAlex Dacre, chief executive of Marlowe, said: "The acquisition of BBC Fire Protection is a further significant step in our strategy of consolidation of the UK fire protection sector. The business benefits from strong recurring revenues, longstanding customer relationships and will further strengthen our national coverage."Shares in Marlowe were up 3.29% to 392.50p at 0822 GMT.