LONDON (Alliance News) - Mortice Ltd Tuesday said that it, and its wholly-owned subsidiary Tenon Facility Management UK Ltd, have entered into an agreement to buy UK-based property service company Office & General Group Ltd for up to GBP6.5 million in a cash and shares deal.
The security and facilities management company said that it will pay up to GBP3 million in cash on completion and will issue 3 million shares on completion, followed by a further 500,000 shares on the second anniversary of completion. Shares in Mortice were untraded on Tuesday, last trading at 60.00 pence.
Tenon will enter into new banking arrangements with Barclays Bank PLC to finance the acquisition and to replace O&G's existing banking facilities.
Mortice said the acquisition when completed is expected to be immediately earnings enhancing and is in line with its strategy to expand its geographical footprint and grow the business.
O&G Group is an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK.
"This acquisition is the first important step in delivering on our strategy of expansion into key new geographies to complement our continued organic growth in areas such as India, Sri Lanka and Saudi Arabia. We remain focused on building a business that can continue to deliver sustainable profitable growth over the long term and our entrance into the UK market with a well-established and profitable business like O&G Group underlines our commitment to delivering this for shareholders," Chairman Manjit Rajain said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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