ISG buys Brazilian stake, completes fundraising, wins Nordic deal

21st Jun 2013 09:46

Construction services group ISG, formerly known as Interior Services Group, has bought a minority stake in Brazilian competitor ACE with a view to a complete acquisition within the next year. Also on Friday the company revealed it had raised £7.4m at 155p from an institutional placing and that it had won its second €150m Nordic data centre deal in the last six months. Chief Executive Officer, David Lawther, said overseas activities were making an increasingly significant contribution to the group and its "growing reputation" with multi-national blue chip companies would underpin its targets of continued overseas expansion.The group has acquired a 20% interest in Sao Paolo-based office fit-out company ACE, which Lawther said was an ideal "point of entry into an exciting new geographic area for ISG". "Our method of entry via an initial minority interest in ACE will permit us to gain a deeper market knowledge and understanding of the business before we exercise our option to acquire the remaining shares over a four year period."ISG intends to assist ACE's future growth with contacts from its international client base and expertise to help expansions into new sectors.ISG will pay £1.9m, comprising £1.7m cash and £0.2m ISG shares for its stake and will have a twelve month option to acquire the remaining 80% of ACE for a up to £12.7m in cash and shares, payable over four years.ACE increased profits 89% in 2012 to 3.4m Brazilian real on revenues more tan doubled to $48.5m Brazilian real.Shares in ISG were down 3.5% at 166p at 10:30 on Friday.OH