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Marlowe acquires Ductclean (UK) Ltd

By BFN News | 07:22 AM | Thursday 13 July, 2017

Marlowe has agreed to acquire Ductclean (UK) Ltd (DCUK) for a total enterprise value of up to £10m, marking its first step into the air hygiene market, and announced an oversubscribed £10m placing. "In addition to providing the Group with a presence in a new complementary service sector, the market in which DCUK operates is currently highly fragmented and offers significant scope for consolidation," it said. The Acquisition of DCUK includes cash consideration of £4m, which would be used in part to repay debt of about £2m. In addition Marlowe would issue 878,031 new shares at 393.88p each, representing an aggregate value of about £3.5m, to the DCUK management team who would lead Marlowe's new Air Hygiene division. An additional earn-out was payable of up to £2.5m, which could be settled in cash or ordinary shares at the company's option. In addition, Marlowe announced a placing that was oversubscribed, with new and existing institutional shareholders, to raise about £10m. "The proceeds of the placing, along with the company's existing £18m debt facilities, will be used to fund the cash consideration for DCUK and to support the Company's plans for further acquisition-led growth," said Marlowe. "The Company has approximately £17m of net headroom under its current debt facilities." The placing proceeds, as well as the issue of the consideration shares, would be subject to approval by the company's shareholders at the general meeting on 28 July 2017. Story provided by

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