Murphy: "Excellent addition to risk management services"
THB today announces the acquisition of 100% of the share capital of Property Risk Management Limited ("PRM").
PRM commenced trading in 2008, providing a range of risk management services to owners and operators of UK commercial and residential properties.
It made an unaudited profit before tax of £6,400 in the eight months to 30 April 2009 and had unaudited net assets of £6,500 at 30 April 2009. Following the acquisition, PRM will form part of THB's Risk Management division, which helps commercial clients manage their occupational road (motor fleet), ergonomic, environmental, health and safety and property risks.
There is no initial consideration, but contingent consideration will comprise:
up to £200,000 in cash, plus up to £150,000 in new THB Ordinary Shares of 10p each (to be issued at 75p, being the average closing share price on the three days preceding completion), conditional upon PRM's performance in the period to 30 April 2010; and
an earnout based on the performance of the acquired business over the four years to 31 October 2014, payable as to a minimum of two-thirds in THB ordinary shares and the balance in cash or loan notes.
THB Group chief executive, Frank Murphy, said: "This acquisition is an excellent complement to our existing risk management services. We have already invested in this sector with the acquisition of Cardinus in 2007 and now, with the acquisition of PRM, we see exciting opportunities for the further growth of the merged operations. "