ETON is well known to TClarke and the Group has worked alongside them on a number of high profile projects in our core markets in London. It specialises in installing and maintaining sophisticated building controls systems on complex office buildings. Recent projects ETON has been involved with include, 20 Fenchurch Street, Chiswick Park, One Canada Square, Bloomberg London, Lacon House and Angel Court.
Under the terms of the acquisition agreement, TClarke has paid an initial cash consideration of £1.5 million, and a further £0.5 million is due to be released to the vendors following agreement of the final completion accounts. Further consideration of up to £0.6 million, will become payable to the vendors, subject to certain earnings targets being met in the two years to 4th August 2019.
For the year ended 31 May 2016 (the latest financial period for which audited results are available), ETON reported revenues of £9.5 million and a pre-tax profit of £0.3 million. As at 31 May 2016 it had gross assets of £3.2 million and net assets of £0.7 million.
After integration costs are taken into account, the acquisition is expected to be earnings enhancing in 2018.
With regards to the two principal directors and owners of the business, Jamie Ward will be remaining with the business for a minimum of two years following the acquisition and Graham Millward will remain available as a consultant to the business for a two-year period.