Bilby Plc Acquires Purdy Holdings Limited
Bilby Plc (AIM: BILB.L), the holding company for P&R Installation Company Limited ("P&R"), a leading gas heating and building services provider, has today announced that it has acquired the entire issued share capital of Purdy Holdings Limited ("Purdy Holdings") for a total consideration of £8.07 million (the "Acquisition"). Purdy Holdings is a privately owned property services business based near Waltham Abbey, Essex.
The consideration is to be satisfied by way of an initial cash payment of £6.57 million together with the issue of 1,250,000 new Bilby ordinary shares at a price of 80 pence per share (the "Consideration Shares") and the issue of a £0.50 million Convertible Loan Note (the "Loan Note"). The Acquisition has been funded through a new term loan of £4.20 million and a mortgage loan of £570,000 from HSBC Bank plc together with a share placing to raise a further £2.95 million for the Company. The share placing was arranged by Charles Stanley Securities and has been heavily oversubscribed. To satisfy market demand certain directors and other existing shareholders (the "Selling Shareholders"), have agreed to place 1,500,000 ordinary shares as part of the share placing (the "Placing").
The Placing therefore comprises the issue of 3,687,500 new Bilby ordinary shares (the "New Shares") and 1,500,000 existing Bilby ordinary shares (the "Sale Shares") at a price of 80 pence per share which represents a discount of approximately 5.9 per cent to the Bilby closing mid market price on 10 July 2015 of 85 pence. The New Shares and the Sale Shares (the "Placing Shares") have been placed with institutional and other investors including Mr David Johnson, non executive director, who has purchased 25,000 Placing Shares.
Purdy - overview
Through Purdy Contracts Limited ("Purdy"), the sole subsidiary of Purdy Holdings, the group operates predominantly as a gas and electrical contractor and is based near Waltham Abbey, Essex. Purdy was established in 1984 as a gas and electrical maintenance and installation contractor. Today Purdy carries out all types of gas and electrical work to both commercial and domestic markets, predominantly focused on social housing and local authority customers.
Purdy provides maintenance services to in excess of 30,000 properties located throughout London, the Home Counties and South East England. Purdy works closely with a number of local authorities and housing associations including Homes for Haringey, the London Borough of Enfield, Aston Group, Central Bedfordshire Council and Hyde Housing. Purdy has also undertaken contracted work for the Salvation Army Housing Association located across England.
Purdy has been notified that it has been awarded two potentially material new contracts which are expected to commence shortly. The first is to undertake annual electrical testing, servicing and reactive works to all properties owned by Peabody Housing. Purdy is also undertaking a pilot project with the London Borough of Barking and Dagenham to install kitchens and bathrooms and to undertake associated mechanical and electrical works. Upon completion of the pilot project Purdy expects to be awarded a new four year contract.
Purdy employs 182 full time staff. The experienced management team is led by owner and Chairman Mr John Horlock.