Styles&Wood swallows up GDM in £4m deal

9th Jan 2017 08:11

(ShareCast News) - Integrated property services and project delivery company Styles&Wood announced on Monday that it has acquired the entire issued share capital of specialist mechanical, electrical and environmental consultancy services provider, The GDM Group, for an initial consideration of £4m to be satisfied in cash and shares.The AIM-traded firm said it envisages the acquisition to be earnings enhancing from FY 2017 onwards.It said the initial consideration was to be satisfied by a cash payment of £2.325m, the issue of £0.675 million in loan notes, payable January 2018, 250,778 shares to the vendors of GDM, who would remain with the business.A potential further deferred and contingent consideration of up to £3.1m, to be satisfied in cash, remained subject to the achievement of certain financial performance and commercial objectives over the three year period, ending 31 December 2019.Styles&Wood said the acquisition in line with its strategic focus on diversifying its service offering across key sectors, enhancing the group's service line capabilities in engineering and professional services, and providing new opportunities to broaden work streams to both existing and new customers."We are delighted to announce the acquisition of GDM," said Styles&Wood chief executive Tony Lenehan."There is a clear trend in the market towards multidisciplinary service provision for blue-chip clients, and this acquisition builds upon the strength of both businesses, as experts in project delivery in live environments."Lenehan said Styles&Wood has a proven diversification strategy which has enhanced its client relationships across focus sectors."The acquisition of GDM further reinforces our strategic vision and will enable us to widen our service offering to both existing and new customers, and create new sustainable business opportunities for the group as a whole."As demonstrated by our recent successful collaboration with GDM on a new framework agreement, we have been very impressed with the team's engineering excellence and strong customer base, and look forward to GDM becoming part of the enlarged group."