Castleford’s PTSG completes double acquisition of two North West businesses

Premier Technical Services Group PLC, the Castleford-based niche specialist services provider, has completed the acquisitions of UK Dry Risers Limited (UKDR) and UK Dry Risers Maintenance Limited (UKDRM).

UKDR, a Bury-based specialist in the installation of dry and wet riser systems, has been acquired for a cash consideration of £2.1m comprising an initial payment of £1.2m, a fixed deferred payment of £50k payable on the first anniversary of completion and a contingent payment of a maximum of £860k subject to the business achieving a profitability targets.

Revenue of UKDR for the year ended 31 March 2016 was £3m, delivering a pre-tax profit of £700k.

PTSG has also acquired UKDRM, an Oldham-based tester, repairer and maintainer of dry and wet riser systems, for a consideration of £3.5m, comprising an initial cash payment of £1.8m, five fixed deferred payments of £60k payable on the anniversary of completion and the balance of up to £1.4m in contingent deferred payments over five years, subject to the business achieving profitability targets.

UKDRM reported a revenue of £1.1m for the year ending 30 November 2015, producing a pre-tax profit of £400k.

Both businesses will be integrated into PTSG’s Electrical Services Division. Mike Charlton of UKDR and Daniel Hardman and Claire Spencer-Hardman of UKDRM will remain with the Group and work with PTSG’s management team.

Paul Teasdale, CEO of PTSG, said: “We warmly welcome UKDR and UKDRM to the PTSG Group. Both businesses are well established and respected in the UK and their addition to the Group expands our service offering into new niche markets.

“We look forward to working with Mike, Daniel and Claire and their colleagues on growing the business and expanding the Group’s activities in these key areas.

“The acquisitions are expected to be immediately earnings enhancing for the Group.”

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