Mowlem has started using money from the sale of its stake in scaffolding business SGB to fund acquisitions in the facilities management sector, as predicted by Building.
The firm last week announced its intention to pay £7.5m for mechanical and electrical maintenance, service and installation business Bower.
Bower, a family-owned limited company, will become part of Mowlem’s existing facilities management division, Aqumen. Bower has 500 UK staff and a turnover of more than £80m.
Aqumen director Liam Cummins said Bower had been chosen for its experience of direct service provision, its national infrastructure and its client base. This includes Marks & Spencer, Orange and numerous councils.
Mowlem is now concentrating its growth plans on the support services arena, and Cummins said more niche acquisitions were set to follow. Mowlem sold its 51% stake in SGB to private firm Harsco for £95.6m last month. Its shares rose 27p to 112.5p on the day of the SGB announcement, but have drifted down again since. They closed on Monday up 0.5p to 100.5p. Earlier this year, the company restructured and laid off 170 staff after a strategic review by management consultant McKinsey.