Breaking: Sale-headquartered Styles&Wood announces £4m acquisition

Property services group Styles&Wood Group plc has announced its multi-million pound acquisition of Kent-based mechanical, electrical and environmental consultants The GDM Group Limited.

According to Sale-headquartered Styles&Wood, the transaction will enhance its engineering and professional services expertise, allowing the firm to broaden its work both with new and existing clients.

Styles&Wood has snapped up the entire issued share capital of GDM for an initial consideration of £4m in cash and shares.

As part of the deal, up to £3.1m is payable as deferred consideration.

GDM was Incorporated in 2001 and employs a team of more than 50. Today, the business works with property owners across sectors such as education, retail and commercial offices.

In the 12 months to April 30 2016, GDM achieved an underlying pre-tax profit of £1m against revenues of £7.9m.

Following the acquisition, all GDM employees will be retained by the business, which will become part of the Styles&Wood Group.

Styles&Wood CEO Tony Lenehan said: “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.

“Styles&Wood has a proven diversification strategy which has enhanced our client relationships across our focus sectors.

He continued: “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.”

GDM director Gary Draper commented: “We truly believe that this is an exciting move for GDM. The business is in great shape and coming under the Styles&Wood umbrella will provide the company and all of our employees with greater opportunities for development and an even stronger platform, both operationally and financially, for growth in the years ahead.”

Styles&Wood saw its revenues leap year on year by 18.6% to £115m in its latest annual results, while pulling in a profit of £2.37m before tax.

The company expects its acquisition of GDM to be earnings enhancing from FY 2017.

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