News blog
Southern Bear
- BY: Andrew Hore |
- POSTED: 05/08/2008 |
Engineering and support services provider Southern Bear is acquiring central heating systems installer and maintainer Fenhams.
Newcastle-based Fenhams generated pre-tax profits of £598,000 on turnover of £8m in the eight months to November 2007. The core customer base is social housing providers and Fenhams also provides them with other building and maintenance work.
Southern Bear is paying £3.75m in cash and shares and could pay up to £3.75m more depending on operating targets. If Fenhams makes pre-tax profits of more than £3.9m for the period between 1 April 2007 and 31 March 2010. The vendors will receive £1 for every £1 that profits exceed £3.9m.
Southern Bear is also raising £3.13m - £2.24m net - through a placing at 2p a share. At that price the enlarged group will be valued at £12m. The shares are trading at 2.5p.
Fenhams should fit well with BGC, which was acquired in September 2007.
Southern Bear has grown rapidly via acquisition. Turnover nearly trebled to £8.74m in the year to March 2008. Pro forma sales are £12.7m. Pre-amortisation profits were £741,000.
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