Business
Acquisition of LaddersFree Ltd.
Acquisition of LaddersFree Ltd..
About this update from React Group Plc
[{"type":"text","content":"\n \n \n \n This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n \n \n REACT Group PLC \n \n \n \n (\"REACT\" or the \"Company\")\n \n \n \n Acquisition of LaddersFree Ltd.\n \n \n \n \n H1 Trading Update\n \n \n \n REACT (AIM: REAT), a leading specialist cleaning, hygiene and decontamination company, is pleased to announce that it has completed the acquisition of LaddersFree Ltd. (\"LaddersFree\"), an established nationwide commercial window, gutter and cladding cleaning business, for a total consideration of up to £8.5 million on a debt-free and cash-free basis (subject to working capital adjustments) (the \"Acquisition\"). This is REACT's second acquisition and represents a further step in the Company's ambition to achieve its stated growth strategy. The Initial Cash Consideration (as defined below) is to be funded from the net proceeds of the placing announced by the Company on 14 April 2022.\n \n \n \n Acquisition highlights\n \n \n \n ·\n Acquisition of LaddersFree, a profitable, cash generative commercial window cleaning business serving local, regional and national customers\n \n \n ·\n Consistent track record of organic revenue growth and profitability\n \n \n ·\n High level of recurring revenue with clients typically working with LaddersFree on a minimum 12-month rolling term providing visibility of future revenues and income\n \n \n ·\n The business is scalable with a very low working capital requirement and has potential for strong organic growth\n \n \n ·\n LaddersFree has a diverse client base across the commercial property, retail, hospitality, leisure and automotive sectors\n \n \n ·\n L\n arge competitive national ecosystem of 'local' specialist subcontractors which the Board believes gives the sector a high barrier to entry\n \n \n ·\n Broadens REACT's customer base and reduces dependence on reactive and ad hoc work\n \n \n ·\n In line with REACT's stated strategy of building a leading industry position through organic growth and via strategic acquisitions\n \n \n \n \n \n ·\...