White Young Green expands into cost consultancy with purchase of multi-disciplinary consultancy.
The pair has paid £7,105,000 in cash, £245,000 in loan notes and £3,650,000 satisfied by the issue of 970,023 ordinary shares in the share capital of White Young Green.
Tweeds is a multi-disciplinary construction consultancy company, offering cost management, project management, building surveying and health and safety services throughout the UK. It employs 150 staff operating from six offices in London, Liverpool, Manchester, Birmingham, Mold and the Isle of Man. Tweeds' work is derived approximately 75 per cent from the private sector and approximately 25 per cent. from the public sector.
Each of the nine senior directors of Tweeds has signed contracts of employment with the White Young Green group.
For the year ended 30 June 2005, Tweeds reported turnover of £10.7m and pre-tax profit of £1.3m, before charging non-recurring remuneration and interest charges in the year of £1.15m. As at 30 June 2005, Tweed's gross assets were £5.9m.
The acquisition of Tweeds is in line with White Young Green's stated strategic objective of expanding into cost consultancy. The Board believes that this acquisition will enable White Young Green to generate incremental revenue growth and increase efficiency as a consequence of the following features.
John Purvis, chief executive commented: "This acquisition is a significant step forward in the ongoing development of White Young Green and is expected to be earnings enhancing in its first full year of contribution.
"It introduces a key new complementary skill to our current portfolio throughout the UK and will therefore significantly enhance our ability to develop strategic partnerships with our clients in the future."
White Young Green has also bought Farningham McCreadie Partnership, the privately-owned town planning consultancy business based in Edinburgh and Belfast, for £2.2m.