HML Holdings plc (HMLH.L), a provider of property management, insurance and ancillary services to residential property blocks, Monday announced the acquisition of Chilton Estates Management or CEM, a property management business, for 545,000 pounds plus some performance related retention payment.
The acquisition is expected to be immediately enhancing to earnings. The stock gained over 3 percent in early morning trade.
HML Andertons Limited, the subsidiary of HML Holdings plc that covers the West of England, has purchased the business and assets of CEM, which is based in Bath, Avon.
The purchase price will be satisfied in cash from HML's existing cash balances.
The transaction includes an additional performance related retention payment of 141,000 pounds, which will be made 24 months from today, if certain criteria are met.
CEM generates annual revenues of approximately 433,000 pounds and has normalized earnings of 100,000 pounds.
CEM was founded in 1996 and is a family business providing property management services to around 2,000 residential units in the Bath area.
Deborah Velleman, Managing Director and former owner of CEM, will continue to manage the business. All the employees of CEM will continue to based in their current offices in Bath.
Rob Plumb, Chief Executive of HML, said, "...We have had a presence in the West Country for some time but CEM will provide the momentum we clearly need to effectively compete in this area. CEM has an excellent customer retention record and a customer service culture that is entirely compatible with our own".
The stock is gaining 3.7 percent in early morning trade at 35.00 pence.
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