Quoted architect SMC has continued its strategy of aggressive expansion by agreeing to purchase DTR:UK, a Manchester-based architect and design company, for £5m.
SMC will pay £1.2m when the deal goes through, and the payment of the full £5m is dependent on DTR’s achievement of targets by 2008.
In the financial year to 31 January 2005, DTR:UK made a £262,000 pre-tax profit on a £3.8m turnover.
SMC said the reason behind the takeover was to increase its exposure to the market in the north of England, where DTR also has offices in Liverpool and Leeds, as well as Birmingham.
SMC chief executive Stewart McColl said: “DTR:UK is a comparatively young team but the principals have worked with me in the past – they are well known to us and respected in our industry.”
McColl floated the company in June, in order to generate capital to buy other practices that would fill sector and geographical gaps in the practice.