Property services group Apollo has bought Essex-based social housing maintenance firm FWA West in a deal estimated to be worth about £2m
The deal is in line with the aim of Dave Sheridan, Apollo’s chief executive, to boost turnover by increasing the group’s responsive maintenance work.
The acquisition coincides with the appointment of Duncan Forbes as managing director of Apollo’s expanded responsive maintenance business. Forbes is a former Willmott Dixon executive.
In the 18 months to 28 February 2009, FWA West turned over £9m but Apollo has a projected turnover for the business of £50m in three years.
FWA West puts our integrated property services offer on a firm footing
It is understood that FWA West will be rebranded to incorporate the Apollo name in the coming months.
In addition to its social housing maintenance, FWA West has also diversified in recent years into hospitality and leisure, education and other public sector refurbishment contracts for the Ministry of Defence and the NHS.
Sheridan said: “This acquisition plays an integral part in our business strategy. FWA West puts our integrated property services offering on a firm footing.”
Apollo already carries out a large amount of planned maintenance - generally large-scale scheduled repairs or overhauls of fixtures or systems. Responsive maintenance deals with work that requires immediate attention.
Last month it was awarded two planned maintenance contracts worth a combined £17m by Plymouth Community Homes.
The deal comes as a large minority stake in Apollo is about to change hands.
Apollo is part of a portfolio of assets taken over by Lloyds Banking Group when it acquired HBOS in 2008. Lloyds is close to agreeing a sale to buyout group Coller Capital after restructuring Apollo’s debt pile last year.