Mon, 15 Sep 2025 | BUSINESS SALE
Pennington Choices Group Limited (PCL), a social housing compliance services firm based in Warrington, has been acquired by housing services provider Mears Group in a deal valued at £9.5 million.
Founded in 2000 by former majority shareholder Mark Seaborn, PCL has built a strong reputation within the social housing market, providing a wide range of compliance activities, including fire risk assessments, energy performance certification, stock condition surveys, asbestos testing, consultancy and other services.
Mears Group has acquired 100 per cent of PCL’s share capital for a total cash consideration of £9.5 million, settled in full upon completion of the deal and funded from the group’s existing cash resources. PCL has been acquired on a debt and cash free basis, with a normal level of working capital.
In the year to March 31 2024, PCL reported turnover of around £16.4 million, up from £14 million in its previous accounting period, while post-tax profits increased from £1.2 million to slightly under £1.6 million.
Mears Group estimates that, within its first full year in the group, PCL will deliver £17 million in revenue and £1.5 million in adjusted EBITDA and be earnings accretive. In order to ensure a smooth transition and integration, Mark Seaborn will remain with the business post-acquisition.
The acquisition reflects Gloucester-based Mears Group’s strategy of enhancing its compliance and asset management service offering as it seeks to capitalise on significant growth opportunities in the highly fragmented housing compliance market.
The deal will accelerate progress in this area of the group’s strategic plan, while extending its compliance capabilities and strengthening its service offering.
Mears Group Chief Executive Lucas Critchley said: "Mears has made solid progress in developing its systems and front-line capability to deliver compliance services. Pennington Choices' core competencies in professional and technical services are complementary to Mears' existing offer and this acquisition will accelerate our progress in the attractive and growing Compliance space.”
"In addition to the strategic fit, importantly, we also see a strong cultural alignment between both organisations, particularly in terms of the emphasis given to the investment in, and development of, our respective teams, and I am excited to welcome the employees and customers of Pennington Choices to the group."
A rapidly changing regulatory environment is driving significant M&A interest in compliance services providers in sectors such as housing
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