Filta Group buys drain specialist Grease Management
AIM-listed Filta Group, a provider of fryer management and other services to commercial kitchens, has acquired Grease Management (GMG) for up to £1.11m in cash.
Filta Group Holdings
170.00p
16:35 23/03/22
The company will pay an initial £1m consideration plus an amount of up to £110,000 in cash, representing the value of the net assets on the date of close, 21 August 2017.
GMG is a UK-wide provider of drain-related services including live bacteria drain dosing and the installation and servicing of Grease Recovery Units. Over 75% of its revenue is recurring in nature, with work typically being carried out quarterly under scheduled maintenance programmes. The company's customer base, which includes restaurants, supermarkets and airports, is similar to Filta's.
Filta said the deal will broaden the product offering of its specialist grease and drain management business, FiltaDrain, and provide additional sales opportunities by the cross-selling of its services into GMG's customer base and vice versa. It added that because of the practical similarities between the two businesses, the integration of staff and operations is expected to be straightforward.
Chief executive officer Jason Sayers said: "The acquisition of GMG is consistent with our strategy of seeking out complementary businesses that strengthen our product offering and expand our customer base. I'm delighted to welcome Mike, an industry veteran who is highly regarded for his knowledge and innovation, to Filta and look forward to working closely with him in the coming months as we grow the business and drive value for the group's shareholders."
The shares were untraded on Tuesday.