LONDON (Alliance News) - Premier Technical Services Group PLC on Monday said it has acquired safety solutions firm Trinity Fire & Security Systems to expand its fire solutions business.
In addition, the electrical testing services provider said results for 2018 are anticipated to be in line with expectations.
Premier Technical will pay GBP10.8 million in cash for the acquisition, funded through the company's existing banking facility and cash raised in October placing.
Deferred consideration of up to GBP5.0 million is also payable over two years, the company said, subject to Trinity Fire achieving certain profit targets in each of the periods.
For the year to the end of June 2018, Trinity Fire reported unaudited revenue of GBP36.8 million and earnings before interest, taxes, depreciation, and amortization of GBP1.5 million.
Premier Technical said it is confident that, when Trinity Fire will be fully integrated, there will be significant opportunity for the enlarged company's both revenue growth and margin enhancement.
"This transformational acquisition will significantly extend Premier Technical's Fire Solutions division to offer a full suite of fire protection services," said Premier Technical Chief Executive Paul Teasdale.
"Critically, the acquisition further increases the percentage of group revenue underpinned by a clear regulatory and compliance requirement," added Teasdale.
Premier Technical shares were 1.9% higher on Monday at 150.36 pence each.
