Lakehouse is pleased to announce the acquisition of the entire share capital of Sure Maintenance Group Ltd (“Sure” or “the business”) for an initial cash consideration of £6.5 million (including repayment of debt) (the “Acquisition”). Sure is engaged primarily in providing gas servicing, maintenance and installations to social housing clients in the North of England and Midlands. Sure complements the current activities of the Group’s Compliance division, which comprises Gas and Fire businesses, operating primarily in South East England and an Air and Water business, which operates nationwide.
Sure offers similar services to the Group’s current gas compliance business and will allow Lakehouse to extend its geographic footprint in the gas servicing and maintenance market. In addition, Sure offers a platform to sell a wider range of the Group’s compliance services into its existing client base. The business employs 370 staff, of which some two thirds are engineers, and is based in Speke, Liverpool, with a regional office in Halesowen.
Sure was founded in 2001 and, in 2005, was acquired by its management and funds advised by Graphite Capital. Following completion of the Acquisition, Sure’s Chief Executive, Darren Cunningham, and the current management team will remain with the business. As a result of the Acquisition, Lakehouse’s total headcount will rise to approximately 1,800.
The Acquisition represents a further step in Lakehouse’s growth strategy as the Group continues to expand and develop through targeted, complementary acquisitions which broaden its service offering and geographical reach.
In the financial year ended 31 December 2014, Sure reported a turnover of £23.2 million and profit before tax of £0.5 million. Sure had gross assets of £7.30 million as at 31 December 2014. The Group expects the acquisition of Sure to be earnings enhancing in the first full year.
Under the terms of the Acquisition, the consideration comprises an initial amount payable in cash on completion of £6.5 million (including the repayment of debt) to the sellers of the business and further deferred consideration of up to £2.35 million, the quantum of which is dependent on Sure’s financial performance in the period up to 31 December 2016.
Stuart Black, Executive Chairman of Lakehouse, said:
“Sure’s specialist skills, client base and business infrastructure give us a platform to capitalise on the growth opportunities from within the UK compliance services industry. As stated at the time of Admission, Lakehouse has a proven track record of acquiring and integrating businesses which complement and enhance our strong organic growth.
“Supporting the existing services of our compliance division, the acquisition will extend the geographical footprint of the Group’s gas business and give Lakehouse a solid platform in the North West for all its services.”
Darren Cunningham, Chief Executive of Sure, said:
“We’re thrilled to be joining Lakehouse, which will allow us to build on a successful period of strong and consistent growth. Combining our specialist skills with the Group’s experience and client base means we are in the best position to bolster our presence in the compliance market, strengthening our existing relationships and extending our high levels of customer service across a widened geographical reach.”