26 April 2016
REACT Group plc
(the "Company" or the "Group")
Completion of the Acquisition of EPUK Limited
REACT Group plc (AIM: REAT), the specialist provider of rapid response deep cleaning and emergency decontamination services, announces the completion of the acquisition of EPUK Limited ("EPUK").
EPUK has been acquired for an initial consideration of £10,000, with a deferred consideration of up to £155,000 being payable once liabilities have been settled. The initial consideration will be settled in cash.
About EPUK
EPUK provides specialist consultancy services in the provision of environmental waste cleaning and control. EPUK has a similar client base to those of REACT Specialist Cleaning Limited in that it acts for a number of UK police forces and companies in the railway sector. EPUK has 3 employees.
D Verdicchio, a current director of EPUK, will continue to provide his specialist Japanese Knotweed removal expertise to the company as an employee. J Verdicchio and Dean Coomber, the remaining two directors will be providing consultancy services for three months after the completion.
In the year to 31 March 2015, EPUK had revenues of £268,000 and EBITDA of £20,000, and net liabilities at 31 March 2015 of £35,000. The board of REACT Group PLC believes that, once established within the Group, the turnover can be increased and with economies of scale the EBITDA margins will be brought into line with other companies within the Group.
Grahame Rummery, CEO of REACT Group plc commented: "The acquisition of EPUK allows REACT to broaden its product offering to both new and existing clients. As well as specialist knowledge in Japanese Knotweed eradication, EPUK has licences and accreditations in the areas of Bio-recovering and cleaning which will be of major benefit to the Group going forward.
EPUK will be our third small acquisition since listing in August 2015. The directors believe that adding EPUK to our current service offering, coupled with the various licences and accreditations we now hold, will help us to win substantial amounts of new business from various "Blue Chip" facilities management groups.
We are continuing to build, albeit from small beginnings, a diverse and respected business and I am confident that we will continue to show double digit organic growth."
For further information, please contact:
REACT Group plc |
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Gill Leates - Chairman |
07799 662642 |
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SPARK Advisory Partners Limited |
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Neil Baldwin |
0113 370 8974 |
Mark Brady |
0113 379 8971 |
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Whitman Howard Limited |
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Nick Lovering |
0207 659 1224 |
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Walbrook PR Ltd |
020 7933 8780 |
Paul McManus |
Mob: 07980 541 893 |
