DGAP-News: MBH Corporation Plc / Key word(s): Investment
MBH CONTINUES GROWTH DRIVE IN 2021, ESTABLISHING A NEW ENGINEERING VERTICAL WITH ACQUISITION OF 3Ks ENGINEERING
MBH today establishes a new vertical with the 100% acquisition of 3Ks Engineering ("3Ks"), a one stop shop for large fabrication & heavy machining service and is one of the largest companies in this industry operating in the UK.
3Ks is the latest example of MBH's agglomeration strategy of acquiring stable and set businesses with solid leadership. 3Ks has been a family business for over 50 years. Established in 1969 in South Wales by Ronald Hanbury, it has been run for the past 20 years or so by sons Kevin and Karl Hanbury who will remain in the business post acquisition. The company has an extraordinarily loyal staff base with the average tenure of an employee (excluding the Hanbury brothers) being 11 years.
3Ks was established to largely serve the oil & gas sector. The majority of their customer base remains in that sector, although they serve a range of industries with clients across the UK providing solutions to Subsea, Offshore, Onshore, Rail Sector and Back Deck requirements.
For the year ending 31 January 2020 3K generated revenue of GBP4.0M. This acquisition is an EPS accretive acquisition.
The estimated total consideration for the acquisition is approximately GBP3.3M. The consideration will be paid partly in unlisted bonds in MBH Corporation plc and would convert to listed bonds upon completion of audited accounts. The terms of the listed and unlisted bonds are as follows:
Convertible notes will be used to settle the remaining purchase consideration. At the date of conversion, the convertible note will convert into MBH shares at the lower of the 30 day volume weighted price preceding the conversion date (i.e. 12 months post completion date) or EUR0.80c per share.
Callum Laing, CEO MBH Corporation plc, commented: "This is a fascinating new vertical for our Group and 3Ks represents the best of the engineering sector with talented leadership who inspire huge loyalty from their people. They deliver consistent quality in a highly complex field and we're delighted to welcome them and their team to the MBH Group."
Kevin Hanbury, Managing Director of 3Ks Engineering, said: "3Ks was founded 51 years ago and in that time we've grown it into a business and team that we are hugely proud of. This latest step is an exciting one for us and our people as we look to accelerate growth and continue to innovate through our products and services for the future."
About 3Ks Engineering
The company's customers are largely centered around the Oil & Gas market sectors and can provide a solution to Subsea, Offshore and Back Deck requirements.
- MBH Corporation plc, Charlotte Williams, firstname.lastname@example.org, +44 (0)770 396 3953
- Perception A, Phil Anderson & Charlie Nelson, email@example.com, +44 (0)776 749 1519/+44 (0)7787 517 087
26.01.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
MBH Corporation Plc
Studio 7-9, Royal Patriotic Victoria Building, Joh
SW18 3SX London
Regulated Unofficial Market in Dusseldorf, Frankfurt
EQS News ID:
End of News
DGAP News Service