Scottish move sees architect pay £10.7m for Parr Architects, Jenkins & Marr, David Duncan and Hugh Martin Architects
Listed architect SMC Group has entered the Scottish market through the acquisition of four practices based there.
Chief executive Stewart McColl’s SMC Group paid £10.7m in combined initial payments for the four business – which will make up the formation of SMC Scotland.
The four practices, Parr Architects, Jenkins & Marr, Davis Duncan and Hugh Martin Architects, have a combined revenue of £13m.
The move is significant as Parr Architects is one of the most established and largest architectural practices in Scotland. The acquisitions mean that SMC Scotland is now the biggest group of architects in Scotland.
Parr Architects has a turnover of £4.5m and a pre tax profit of £0.9m. It was bought for £3m.
SMC’s new clients now include BAA and Pacific Quay Developments from Parr Architects, BP and Sainsbury’s from Jenkins & Marr, the Next Group and The Bank of Scotland from Davis Duncan and Gleneagles Hotel and Frogmore Developments from Hugh Martin Architects.
SMC has also acquired architect Hickton Madeley – a practice based in the Midlands with specific experience in the public sector and especially prisons. SMC is targeting the prison sector as a growth market.
The practice was bought for £1m. Last year, Hickton Madeley generated revenue of £2.5m, with pre tax profit of £0.5m.
McColl said the acquisitions were consistent with his growth strategy. He said: “This is consistent with our strategy of taking a balanced approach to growth as these acquisitions enhance our geographic and sector coverage. All of these deals will be earnings enhancing in the current financial year and firmly establish SMC as the number one architect and design business in Scotland.”