PTSG boosts fire fighting arm with £16m acquisition

Castleford-based PTSG called the deal transformational and said it will significantly extend its existing Fire Solutions business to offer a full suite of fire protection services.

PTSG said Trinity is a well-established, high quality specialist in fire and security systems.

The initial consideration is a cash payment of £10.8m. However, Trinity has around £3.1m of cash on its balance sheet, so the first payment is around £7.7m.

A deferred consideration of up to £5.0m is also payable over two years, subject to Trinity achieving stretching and escalating milestone profitability targets which are self-financing in each of those periods. The deferred consideration can be paid in cash or shares at the option of PTSG.

Paul Teasdale, CEO of PTSG, said: “We are delighted to welcome Trinity, a well-established and respected business in the UK, as our latest addition to the group.

“This transformational acquisition will significantly extend PTSG’s Fire Solutions division to offer a full suite of fire protection services. This now includes the design, source, supply, installation and servicing of the full range of best-in- class fire prevention solutions.”

He said the deal will increase the percentage of group revenues underpinned by a clear regulatory and compliance requirement.

“We look forward to working with Trinity’s senior management and their colleagues to grow our Fire Solutions division as it benefits from PTSG operating platform and nationwide coverage with a combined base of 20,000 corporate customers.”

Trinity reported revenue of £36.8m in the year to June 30, delivering an EBITDA of £1.5m. PTSG said that once Trinity is fully integrated, there will be significant opportunity for revenue and margin growth.

It said the acquisition will enhance PTSG’s existing Fire Solutions offering, such as sprinklers and dry and wet risers, through the extension into other addressable systems. These include fire detection and alarms, emergency voice communication, fire suppression, and life safety.

The deal will more than double the size of PTSG’s Fire Solutions division.

Trinity has in excess of 2,000 customers servicing more than 29,000 sites. PTSG said it is highly complementary with its existing national presence and customer coverage.

Analyst julian Cater at Numis said the deal will significantly scale and broaden’s PTSG’s offering in the Fire Solutions market.

PTSG also said its 2018 results should be in line with the board’s expectations.