Acquisition

RNS Number : 4085O

Galliford Try Holdings PLC

07 October 2021

 

The information contained within this Announcement constitutes inside information. Upon the publication of this Announcement via A Regulatory Information Service, this inside information is now considered to be in the public domain.

FOR IMMEDIATE RELEASE.

7 October 2021

Galliford Try Holdings plc ("Galliford Try")

Acquisition of nmcn's Water business from nmcn plc (in administration) ("nmcn") and nmcn Sustainable Solutions Limited (in administration)

The Board of Galliford Try is pleased to announce that it has agreed to acquire substantially all of nmcn's Water business including the specialist water process and control businesses Nomenca and Lintott (together, "nmcn Water" or the "Water Business") for an aggregate consideration of £1.0 million in cash (the "Transaction").

Commenting on the Transaction, Bill Hocking, Chief Executive of Galliford Try, said:

"I am delighted to welcome the employees, clients and suppliers of nmcn Water to Galliford Try. This acquisition is an excellent strategic fit with our existing business and will accelerate the growth of our successful Environment division, providing work with new clients and increasing our capabilities. This is a very exciting time as we deliver our Sustainable Growth Strategy and I look forward to a bright future for our collective team."

nmcn Water profile and fit with Galliford Try

nmcn Water works with UK water utility companies to build and maintain high-quality water and wastewater treatment systems. Its geographic coverage, customer relationships and technical capabilities are all highly complementary to Galliford Try's existing operations.

Galliford Try has a detailed understanding of nmcn Water's operations and has closely followed the evolution of the Water Business through nmcn's refinancing process and various trading and financial disclosures through 2021. In combination, this knowledge has provided us with a thorough understanding of nmcn Water and its prospects.

The 75 year heritage and values of nmcn Water are an excellent fit with the history and values of Galliford Try. In particular, the Transaction is consistent with our recently published Sustainable Growth Strategy:

·         Providing a geographic footprint that will accelerate growth of the Water Business through a series of established frameworks with new customers for Galliford Try;

·         Extending our capabilities in the design and Mechanical, Electrical, Instrumentation, Control and Automation (MEICA) elements of the Water Business; and

· Introducing further high quality people to strengthen our own talent pool.

Galliford Try is especially appreciative of the efforts of nmcn's customers, suppliers, employees and management over the last year and will be engaging proactively to provide the stability to move forward. Approximately 900 nmcn Water employees will join Galliford Try as a result of the Transaction, including its senior management team.

Details of the Transaction

Galliford Try will acquire substantially all of nmcn's Water Business, including the specialist water process and control businesses Nomenca and Lintott. The Water Business generates annual revenue of approximately £100 million and the Transaction is expected to be immediately earnings enhancing, before transaction and restructuring costs. The Transaction has been implemented by way of an administration sale.

In addition to the £1.0 million purchase price, Galliford Try anticipates that it will have to fund certain contractual liabilities incurred prior to the completion date of the Transaction which will be necessary to provide operational stability to the Water Business.

For the year ended 31 December 2019, being the last year for which nmcn has published audited results, nmcn's water segment, prior to subsequent re-statements, generated operating profit of £7.6 million on turnover of £282.6 million. The gross assets of nmcn's water segment were £70.0 million as at 31 December 2019.

The person responsible for arranging the release of this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel & Company Secretary.

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For further information please contact:

Galliford Try Holdings plc Bill Hocking, Chief Executive    Andrew Duxbury, Finance Director Kevin Corbett, General Counsel & Company Secretary	Tel: [phone]
Peel Hunt LLP (Financial Adviser and Corporate Broker) Charlie Batten Harry Nicholas Miles Cox	Tel: [phone]
Tulchan Communications James Macey White Victoria Boxall	Tel: [phone]

 

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