Deal struck for national window cleaning group
A nationwide commercial window, gutter and cladding business looks set to be acquired by cleaning, hygiene and decontamination specialist REACT in a deal worth up to £8.5m.
Founded in 2002, LaddersFree has an established network of more than 300 approved service partners and utilises local window cleaning companies to offer its services to all areas of mainland UK.
Its headquarters are in Topsham, near Exeter.
Since its inception, LaddersFree has grown organically. Unaudited financials for the year to 30 November 2021 show that it generated revenue of £3m and a pre-tax profit of £1.4m.
The takeover, which is in line with Swadlincote-based REACT’S stated strategy of building a strong industry position through organic growth and via strategic acquisitions.
The board believes that the terms of the deal, and the valuation of LaddersFree, are attractive given the “opportunities to diversify the group’s service offering through expansion into complementary markets, and to leverage existing resources to accelerate growth”.
Shaun Doak, chief executive of REACT, said: “We are delighted to welcome Jason, Justin and the team at LaddersFree into the REACT family. Over the last 20 years they have established a very strong reputation for consistently delivering high-quality services greatly valued by local, regional and national customers.
“The LaddersFree value proposition to both customers and their network of specialist service providers is incredibly attractive to our business. Combined with the team’s focus and customer-centric service culture, they fit perfectly within the group.
“We are excited by the opportunities that lay ahead as we continue to invest in profitable growth and offer our increasingly unique brand of services across the broadening customer base of the business.”
Of the £8.5m being paid, £4.65m will change hands on completion, while £1m is being brought forward through the issue of ordinary shares.
There will also be a deferred cash consideration of £1.45m with a 5 per cent coupon, to be paid in four instalments every six months beginning on 1 December 2022, as well as a performance-based contingent consideration of up to £1.4m.
Singer Capital Markets is acting as REACT’s nominated adviser and broker.
Benchmark International and Temple Bright advised the sellers on the deal.