Support services group acquires ServiGroup for at least £15m to enhance position in rail sector.
Support services group Mouchel Parkman has acquired ServiGroup for up to £20.6m.
ServiGroup provides signalling, telecoms and power engineering services to the rail industry through its principle subsidiary ServiRail.
Mouchel Parkman will pay £14.98m cash for the company and a further £5.69m depending on the audit for the year ended March 31 2005.
In the eight months to 31 March 2004, ServiGroup generated profits before tax of £0.2m on a turnover of £17.32m. On the 16 May the net assets of the business totalled £4.86m.
Mouchel Parkman chief executive Richard Cuthbert said: “ServiGroup broadens and complements our existing offering and will significantly enhance our prospects in what is an exciting period for the UK rail industry.”
Sean McKeague, chairman of ServiGroup said that the deal would enable ServiGroup to play a more significant role in Network Rail’s investment programme.
