Marlowe buys Suez WCS for £4.5m

(Sharecast News) - AIM-listed support services group Marlowe has acquired Suez WCS for an enterprise value of £4.5m in a deal which it said will "significantly" extend the scale and breadth of its activities in the UK water treatment market.Suez WCS formed part of Ondeo Industrial Solutions UK Limited, a subsidiary of Suez Environnement and was established through the merger of Suez's non-industrial UK water treatment, hygiene and chemical blending activities.Founded in 1977 and employing approximately 170 staff, the business operates nationally from its headquarters in Daventry and provides water treatment and hygiene services across a broad range of sectors. It also produces certain chemicals used in water treatment applications.For the year to the end of December 2017, it generated unaudited pro-forma revenues of £13.2m, the majority of which were contracted recurring testing and maintenance revenues, and pro-forma earnings before interest, taxes and depreciation of £0.7m. Chief executive Alex Dacre said: "The acquisition of Suez WCS is a further significant step in our strategy of consolidating the UK water treatment market and strengthens our position as one of the leading players. Suez WCS broadens the scope of our water treatment activities and offers attractive synergies with our existing businesses which we are confident will drive increased returns for Marlowe's shareholders."The deal was funded from the group's existing cash resources.At 1020 BST, the shares were up 2.8% to 519.25p.