MBH Corporation plc announces fourth acquisition for 2020 and expands its UK construction business
For the year ended 31 December 2019, GS Contracts generated revenues of GBP5.3m. This latest acquisition takes the pro-forma revenues of the MBH Group portfolio companies up to GBP86.8m based on the financial year 2019 results.
With their own in-house production facilities, GS Contracts is able to reduce reliance on suppliers, and offer greater control to clients. As a tactical acquisition for Gaysha Limited, the team are looking to capitalise on this central facility to expand the provision of joinery services to construction firms and grow both companies further.
The estimated total consideration is approximately GBP1.7m (which includes the acquisition of a commercial property worth approximately GBP0.8m). The consideration will be finalised once the 31 December 2019 audit has been completed.
A combination of convertible notes and bonds will be used to settle the purchase consideration. At the date of conversion, the convertible note will convert into MBH shares at the lower of the 30-day volume weighted price preceding the conversion date (i.e. 12 months post completion date) or EUR0.80c per share.
Callum Laing, CEO of MBH Corporation plc commented, "The acquisition of GS Contracts represents an important moment at MBH and for the team at Gaysha, showing their ambition to grow through acquisition as well as organically. The companies within our construction portfolio have been hugely impressive in how they have faced the challenges the Covid-19 crisis has presented in their sector and we are excited to see what's next for GS Contracts and Gaysha."
Ian Elsey, CEO of Gaysha Limited commented, "We are delighted to announce our acquisition of GS Contracts. After initially becoming involved with the business at the end of 2019, we have been working collaboratively to build on the already strong foundations set by the existing management team. The acquisition of GS Contracts gives us greater control of our supply chain as we look to capitalise on the in-house production and manufacturing expertise, coupled with our ability to now offer a full turn-key fit out and refurbishment solution to our clients across a multitude of industries."
About MBH MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium bfd across multiple geographies and sectors that are well established, profitable and looking to scale. By leveraging the Agglomeration strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent and accretive acquisition of excellent companies.www.mbhcorporation.com
About GS Contracts (Joinery) Limited GS Contracts (Joinery) Ltd is a high-end fit out contractor with its own in-house manufacturing capabilities. Services offered include: Design management; Project management; Fit out; Solid surfaces; and Bespoke manufacturing.www.gscontracts.com
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