Tue, 05 Nov 2013 | DIVISION SALE
Haydon, the mechanical and electrical (M&E) arm of Mears, has been sold to its management for £1.
Mears bought Haydon Mechanical and Electrical (HMEL) in 1999. It specialises in designing and installing services for new-build residential developments. However, Mears has since moved its focus towards the social housing and care markets.
The company commented on the sale of the division: “In the current operating environment for mechanical & electrical engineering services, with limited new build opportunities and increasing competition for these services, HMEL has been running at a loss.
“In addition, the business is today less of a focus for Mears as it looks to grow its two profitable core divisions of social housing and care. The Board has reached the conclusion that it is in the interests of shareholders to dispose of HMEL.”
The sale contained a clause specifying that if the new owners of HMEL sell the business or its assets then Mears will receive deferred consideration of up to £7 million.
David Miles, chief executive of the Mears Group, added that Haydon had become “non-core” and in divesting the firm Mears will be able to “focus solely on growing its core operating divisions”.
HMEL generated unaudited revenues of £18.7 million in the six months to the end of June 2013 and a loss before tax of £1.4 million.
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