Fulcrum Utility Services Acquires Electrical Infrastructure Services Firm Dunamis.
7 February 2018 - UK-based Fulcrum Utility Services Ltd (LSE: FCRM) has entered into a conditional agreement to acquire electrical infrastructure services company The Dunamis Group Ltd for a consideration of GBP 22m (USD 30. 75m), the company said.
Fulcrum conditionally raised GBP 10.4m, before expenses, by way of a placing of 17.376m new ordinary shares at 60 pence per share.
The company said the acquisition will significantly expand and extend Fulcrum's capabilities and specialist knowledge in the electrical infrastructure services sector, creating one of the UK's leading gas and electrical infrastructure services groups
Dunamis offers a range of fully accredited services and outstanding technical excellence in relation to the design, construction and ongoing contracted maintenance of power installations and related grid connections
In addition to the expansion and extension of Fulcrum's capabilities, there are significant cross-selling opportunities between the gas and electrical connections activities of the two businesses
Fulcrum's recently acquired Independent Distribution Network Operator licence will also enable the company to adopt, own and operate electrical connections assets installed by the Enlarged Group on an ongoing basis
The electrical connections market represents a significant growth opportunity for Fulcrum, and is estimated to be worth in excess of GBP 500m per annum
For the 6 months ended 31 October 2017, Dunamis achieved unaudited revenues of GBP 10.2m and EBITDA of GBP1.8 m
The acquisition is expected to be significantly accretive to underlying earnings per share in the first full year following completion.
Fulcrum said the consideration and associated expenses will be satisfied by the placing to raise gross proceeds of GBP 10.4m, the issue of GBP11.2 m of new Ordinary Shares to the Sellers and cash from Fulcrum's existing cash reserves of GBP1.5 m
The placing comprises the issue of 17,376,000 new ordinary shares at a price of 60 pence per share - a premium of approximately 1.4 per cent to the closing middle market price of 59.2 pence per ordinary share on 1 February 2018
On Completion, Wayne Hayes, Dunamis' chairman and founder, will join the board of Fulcrum as a non-executive director.
Fulcrum also announces the appointment of its chief financial officer Hazel Griffiths to the board as an executive director with immediate effect.
Upon Completion, Dunamis shareholders will hold approximately 8.7 per cent of the Enlarged Share Capital.
Target: The Dunamis Group
Buyer: Fulcrum Utility Services
Deal size in USD: 30.75m
Type: Corporate Acquisition
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Feb 7, 2018|
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