Filta Group Holdings PLC Acquisition of Grease Management Ltd (5932O)
August 22 2017 - 2:00AM
UK Regulatory
TIDMFLTA
RNS Number : 5932O
Filta Group Holdings PLC
22 August 2017
22 August 2017
FILTA GROUP HOLDINGS PLC
("Filta" or "the Group")
Acquisition of Grease Management Ltd
Filta Group Holdings plc (AIM: FLTA), the provider of fryer
management and other services to commercial kitchens, is pleased to
announce the acquisition of Grease Management Ltd ("GMG") for a
total consideration of up to GBP1.11 million in cash, being GBP1.0
million of initial consideration plus an amount of up to GBP110,000
in cash, representing the value of the net assets on the date of
close, 21 August 2017.
GMG is a long-established, UK-wide provider of drain-related
services including live bacteria drain dosing and the installation
and servicing of Grease Recovery Units. Over 75% of GMG's revenue
is recurring in nature, with work typically being carried out
quarterly under scheduled maintenance programmes. GMG's customer
base, which includes restaurants, supermarkets and airports, is
similar to Filta's.
The acquisition will broaden the product offering of Filta's
specialist grease and drain management business, FiltaDrain, and
provide additional sales opportunities by the cross-selling of its
services into GMG's customer base and vice versa. Because of the
practical similarities between the two businesses, the integration
of staff and operations is expected to be straightforward. GMG
founder, Mike Goodbourn, has entered into a consultancy agreement
with Filta which will continue in his role with business
development.
In its most recent unaudited annual accounts, for the year ended
31 May 2017, GMG reported a profit before tax of GBP135,000 from
revenue of GBP1.28 million. Net assets were GBP0.2 million. It is
estimated that following the acquisition immediate savings of
approximately GBP100,000 per annum will be achieved relating to
costs specific to the previous ownership and which will not be
incurred following the acquisition. Filta also believes that the
introduction of more efficient scheduling systems and use of the
Group's existing knowledge and resources, provides scope for
increasing GMG's business capacity by up to 30% on substantially
the same underlying cost base.
Jason Sayers, CEO of Filta, said:
"The acquisition of GMG is consistent with our strategy of
seeking out complementary businesses that strengthen our product
offering and expand our customer base. I'm delighted to welcome
Mike, an industry veteran who is highly regarded for his knowledge
and innovation, to Filta and look forward to working closely with
him in the coming months as we grow the business and drive value
for the Group's shareholders."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information:
Filta Group Holdings plc via Redleaf Communications
Jason Sayers, Chief Executive
Cenkos Securities (NOMAD and
broker) +44 (0)20 7397 8927
Bobbie Hilliam
Redleaf Communications (Financial filta@redleafpr.com
PR adviser)
David Ison +44 (0)20 7382 4730
Elisabeth Cowell
Elise Palmer
About Filta Group Holdings plc:
Filta Group Holdings plc (AIM: FLTA) is a provider of services
to commercial kitchens, primarily operating in the UK and US.
The cornerstone of the Company's offering is FiltaFry, the
complete fryer management service incorporating on-site
micro-filtration as well as the removal and replacement of cooking
oil.
The Company also replaces damaged or perished refrigerator and
freezer door seals through its Fita-Seal brand; installs and
maintains refrigeration units through its Filta Refrigeration
brand; and prevents the build-up of fats, oil and grease through
its FiltaDrain brand.
The Group has over 180 Franchise Owners, and teams of corporate
vans, providing services to over 5,000 restaurants and other
commercial kitchens every week.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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