Water sector MEICA contractor acquired by Galliford Try at 5.4x profits
Thu, 09 Nov 2023 | BUSINESS SALE
AVRS Systems, a specialist mechanical, electrical, instrumentation, control and automation (MEICA) design and build contractor serving the water industry, has been acquired by listed construction group Galliford Try. The deal is valued at up to £7 million, with an initial consideration of £4.5 million financed from the group’s existing cash resources.
If the maximum consideration is met, the deal would represent close to a 5.4x multiple of AVRS Systems’ pre-tax profits of £1.3 million for last year, with the company generating revenue of £7.9 million. At the time, the company’s gross assets were valued at £3.8 million.
AVRS Systems was founded in 1972 and operates out of premises in Cumbria, Warwickshire and Middlesborough. The company, which employs close to 100 staff, holds long-term frameworks with several key water sector clients, as well as the MoD and the Coal Authority. In the energy sector, the company also has long-term client relationships providing in-house design, supply, installation and commissioning services of MEICA.
The company’s operations are closely aligned with Galliford Try’s existing business, with the acquisition also representing a continuation of the group’s strategy of development in adjacent markets. AVRS’s capabilities will complement its growing environmental operations, whilst also accelerating the growth of the group’s asset optimisation and maintenance strategy.
Commenting on the acquisition, Galliford Try Chief Executive Bill Hocking said: "I am delighted to welcome AVRS to Galliford Try. We have said that we will continue to consider bolt-on acquisitions to accelerate our strategy and this acquisition increases our capabilities in the environment business and bolsters the group's capital maintenance credentials.”
"AVRS brings highly complementary skills into the group which will further advance our sustainable growth strategy."
Read about how environmental and sustainability concerns are becoming central to many M&A strategies
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