BSR
BSR
  • Home
  • Distressed Businesses
    • All Distressed Businessess
    • Administrations
    • Liquidations
    • Winding Up
    • Insolvency Advice  New
  • Buy a Business
    • All Businesses for Sale
    • Find a Business for Sale
    • Raising Business Finance
    • Buyer Acquisition Service   New
    • Escrow Service   New
  • Sell a Business
    • Sell Your Business
    • Seller Accounts
    • Need Help Selling?
    • Help With Finance New
    • Business Valuation
    • Business Wanted Adverts
  • Insights & News
    • View All News
    • View All Insights
  • Off-market
    • Source deals
  • Log In
  • Join Now
Join now
11111111

Home / News / Commercial cleaning firm acquired in potential £4.75m deal

Commercial cleaning firm acquired in potential £4.75m deal

Mon, 29 Mar 2021 | BUSINESS SALE

Commercial cleaning firm acquired in potential £4.75m deal

Cleaning and decontamination firm REACT Group has made its first acquisition with the takeover of commercial cleaning company Fidelis Contract Services in a deal that could rise to £4.75 million. The total consideration will be based on a 4.75x multiple of Fidelis’ EBITDA for the financial year ending March 31 2022.

The acquisition will proceed for an initial £1.7 million consideration, of which £1.5 million is payable in cash with £200,000 coming through the issuing of new ordinary shares. A further £3.05 million in deferred payments is subject to Fidelis’ upcoming financial performance in the current trading year.

The deferred consideration will be paid in cash instalments ending March 29 2024. Regarding the structure of the deal, REACT Executive Chairman Mark Braund said: "We have structured the acquisition such that the deferred consideration is linked to the EBITDA performance of Fidelis. We therefore intend to fund any further consideration payable from a combination of existing resources and cash generated by the enlarged REACT group post acquisition.”

Fidelis, which provides a range of specialist cleaning services for clients in a wide array of sectors, is the first acquisition in REACT’s growth strategy, through which it is aiming to build a leading market position via both organic growth and strategic acquisitions.

REACT says the acquisition will be immediately earnings enhancing and will drive a significant increase in the scale of its services. Founded ten years ago, Fidelis is a strong performer in the cleaning and hygiene sectors, generating 87 per cent recurring revenue for the financial year ended March 31 2020.

Commenting on the deal, Mark Braund said: "We are delighted to announce the acquisition of Fidelis today, our maiden acquisition and an important milestone in our stated goal to become the country's most trusted name in the provision of specialist cleaning, decontamination and hygiene services. The acquisition is expected to be immediately earnings enhancing and leaves REACT well positioned to continue to increase market share.”

"The combination of our recent organic growth and the Fidelis acquisition leaves us well positioned to deliver material growth in the current financial year," Braund added.


Find businesses for sale here.

If you are looking for an exit, we can help!


Share this article



Latest Businesses for Sale

Provider of Bespoke Art Conservation & Restoration Services
UK Wide

The company offers personalised services to a growing client base, ensuring all art mounting, conservation and restoration requirements are met by a team of highly skilled specialists. Serving museums, galleries, Government departments and private co...

Asking Price: Offers Invited
Turnover: £695,000

LEASEHOLD


Supplier & Installer of Security Systems
North West, UK

The company operates as a supplier, installer and maintainer of a range of security solutions, including Intruder, Access Control, CCTV and Warden Call Systems. The business currently provides its services to 2,000 active clients, approximately 80% o...

Asking Price: Offers Invited
Turnover: £955,000

FREEHOLD


Gas Engineering Company
South East, UK

Niche contractor to gas network operators. Services include purge and relights and meter relocation. £625,000 average adjusted EBITDA.

Asking Price: Offers Invited
Turnover: £3,166,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
26
 
Jan
 

UK M&A down 16 per cent in 2022, but sentiment remains optimistic | BUSINESS NEWS

New analysis from PwC has revealed that UK M&A activity decl...

 
26
 
Jan
 

Private equity-backed law firm targeting further M&A in 2023 | BUSINESS NEWS

Stowe Family Law, a Leeds-headquartered specialist family la...

 
25
 
Jan
 

Eastbourne seafront hotel on the market for £2.3m | COMMERCIAL PROPERTY

The Eastbourne Riviera Hotel, located on the town’s po...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
12
 
Feb
 

Wiggle to takeover online rival Chain Reaction | BUSINESS SALE

Wiggle, the largest online retailer of bikes and cycling equ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news

logo
Our Services Distressed Businesses
  • Businesses for Sale
  • Distressed Companies
  • List a Business
  • Help with Finance
  • Buyer Acquisition Service
  • Small Businesses for Sale
Company Buy a Business
  • About BSR
  • Insights
  • News
  • FAQs
  • Reviews
Get In Touch
020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm
About BSR
Business Sale Report is the UK's leading
independent business for sale & distressed business listing service.
Established in 1995, BSR offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.
Subscribe

Subscribe to our newsletter to receive news about the latest businesses for sale.

  • Terms
  • Privacy
  • linkedin
  • facebook
  • twitter
© 1995-2023. Business Sale Report Ltd. All rights reserved. www.business-sale.com.