Singer Capital Markets is delighted to have acted as Nominated Adviser and Broker* to REACT Group plc (AIM: REAT) on its Acquisition of 24hr Aquaflow Services Limited (“Aquaflow”), the drainage and plumbing services company based in London and the South East, for a total consideration of up to £7.4 million on a debt-free and cash-free basis.
The Directors believe the Acquisition will provide sought after and complementary services that the Company’s FM customers demand, introduce new and strong relationships with FM customers to the Company and enable the Company to offer another lead-in service for organic growth within the FM sector, especially in London and the South East. They also believe that the Acquisition will enhance earnings per share (EPS) immediately with the Acquisition expected to be 31% accretive to adjusted EPS in its first full year of consolidation (year ending 30 September 2026).
The Company also announced an associated fundraise which was heavily oversubscribed to provide the Company with additional working capital.
Shaun Doak, Chief Executive Officer of REACT, commented:
“We are delighted to welcome Sherry Mundy, Paul Mundy, Neil Holmes and the Aquaflow team into the REACT group. Over the last 20 years they have established a very strong reputation for consistently delivering high-quality services and solutions greatly valued by customers.
The Acquisition is expected to be immediately earnings enhancing and contribute significantly to the future profitability of the Group. This is REACT’s third acquisition and further demonstrates the Company’s stated inorganic growth strategy. We are excited by the opportunities that lie ahead as we continue to invest in profitable growth and offer our complementary services across the broadening customer base of the enlarged business.”
About REACT Group plc
REACT Group Plc is a United Kingdom-based provider of specialist cleaning, decontamination, and hygiene services, including both contracted commercial cleaning and specialist emergency decontamination work.
*Singer Capital Markets is acting as Joint Broker alongside the Company’s existing Broker
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