Connaught said the acquisition would give its interiors arm, which offers facilities management services, more opportunities. The firm added that Bluu would be able to pitch for larger jobs with the backing of Connaught’s balance sheet.
Connaught chief executive Mark Tincknell said the group could raise margins by including maintenance and cleaning with project management and construction services on interior jobs.
Bluu was set up in October 2000 and is run by Gleave and three other former directors of Churchfield Associates West, a subsidiary of fit-out firm Churchfield, which went into administration last year. The firm, which is divided into three trading companies, had a turnover of £10.3m and a pre-tax profit of £147,000 for the 14 months to 31 December 2001. It has a forward order book of £8.5m.
Connaught, which is listed on the alternative investment market, said it would buy Bluu with a mixture of cash, shares and loan notes. The deal also includes a deferred sum of £9m that will be owed to Bluu if the firm achieves profit milestones during the three financial years to 31 August 2005.