LONDON (Alliance News) - Support services firm Marlowe PLC on Thursday said it has agreed to buy H2O Chemicals Ltd for GBP2.8 million and will raise GBP10.0 million via a placing.
H2O, based in Leeds, provides water treatment and hygiene services to customers in the Midlands and Yorkshire, covering clients in the industrial, healthcare, food production and higher education sectors.
In the year to the end of January, H20 made adjusted earnings before interest, taxation, depreciation and amortisation of GBP600,000 on revenue of GBP6.1 million.
Marlowe, which invests in companies providing critical asset maintenance services, said the deal will double the size of its water treatment division, bring a large new base of customers and will further its target to provide national coverage in all of its operating sectors.
In connection with the deal, Marlowe also said it has raised GBP10.0 million through a placing and subscription at 170.00 pence per share. Those funds will be used to back Marlowe's push to identify further acquisitions in its water treatment and fire protection units.
Marlowe shares were among the best performers in the AIM All-Share on Thursday morning, up 10% to 185.00p, having touched a high of 194.50p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Marlowe (MRL)