DGAP-News MBH CONTINUES GROWTH DRIVE IN 2021, ESTABLISHING A NEW ENGINEERING VERTICAL WITH ACQUISITION OF 3Ks ENGINEERING
DGAP-News: MBH Corporation Plc / Key word(s): Investment
MBH CONTINUES GROWTH DRIVE IN 2021, ESTABLISHING A NEW ENGINEERING VERTICAL WITH ACQUISITION OF 3Ks ENGINEERING
London, 26 January 2021, MBH Corporation plc (MBH), a diversified investment holding company, is launching a new engineering vertical with the acquisition of 3Ks Engineering ("3Ks"), one of the largest companies in the UK to offer the dual role of large fabrication alongside heavy machining. This is MBH's first acquisition of 2021 following a highly active 2020 which saw the group make 12 acquisitions to grow to 22 companies in its portfolio. 3Ks Engineering will be the 23rd company joining MBH.
MBH today establishes a new vertical with the 100% acquisition of 3Ks Engineering ("3Ks"), a one stop shop for large fabrication & heavy machining service and is one of the largest companies in this industry operating in the UK.
3Ks is the latest example of MBH's agglomeration strategy of acquiring stable and set businesses with solid leadership. 3Ks has been a family business for over 50 years. Established in 1969 in South Wales by Ronald Hanbury, it has been run for the past 20 years or so by sons Kevin and Karl Hanbury who will remain in the business post acquisition. The company has an extraordinarily loyal staff base with the average tenure of an employee (excluding the Hanbury brothers) being 11 years.
3Ks was established to largely serve the oil & gas sector. The majority of their customer base remains in that sector, although they serve a range of industries with clients across the UK providing solutions to Subsea, Offshore, Onshore, Rail Sector and Back Deck requirements.
For the year ending 31 January 2020 3K generated revenue of GBP4.0M. This acquisition is an EPS accretive acquisition.
The estimated total consideration for the acquisition is approximately GBP3.3M. The consideration will be paid partly in unlisted bonds in MBH Corporation plc and would convert to listed bonds upon completion of audited accounts. The terms of the listed and unlisted bonds are as follows: