Castleford’s PTSG accepts £265m Macquarie takeover

Castleford, West Yorkshire-based Premier Technical Services Group plc (PTSG) said on Thursday its independent directors agreed to a £265.3 million takeover offer from a subsidiary of Australian investment bank Macquarie Group Ltd. 

The Macquarie unit has offered 210.1p per share in cash for PTSG, a premium of 141.5% to the closing price of 87p on June 19 and a 72% premium to PTSG’s volume-weighted average price of 122p over the past 12 months.

PTSG shares soared 140% to around 209p on the news.

The offer will now be put to PTSG shareholders at a general meeting, where a total of 75% must vote in favour.

PTSG has four divisions — Access & Safety, Electrical Services, Building Access Specialists and Fire Solutions — and has about 1,200 employees serving 20,000 customers.

PTSG floated on the AIM stock market in February 2015 at 52p per share.

PTSG has experienced strong growth, generating 31% annual revenue growth to £69.1 million in the financial year ended December 31, 2018, of which 19% was attributable to organic growth. 

PTSG chairman John Foley said: “PTSG undertook an IPO in February 2015 with a clear plan to grow both organically and through carefully selected acquisitions.

“Between the financial year ended 31 December 2015 and the last financial year ended 31 December 2018, reported revenue and adjusted EBITDA have grown at an average annual rate of 39 per cent. and 40 per cent. respectively.  

“PTSG continues to have a significant pipeline of carefully identified acquisition opportunities which it would like to execute to confirm a strong position in the chosen niche specialist testing and compliance sectors in which it operates.

“Against the backdrop of an increasingly competitive market for acquisitions, with a need to close deals quickly and fund them effectively, I believe that Macquarie’s deep access to funding will better position PTSG to continue with its acquisitive growth strategy. 

“The Acquisition represents a 304 per cent. premium to PTSG shareholders who invested upon flotation in 2015, and a 141.5 per cent. premium to the most recent closing share price. 

“The independent directors are recommending that PTSG shareholders vote in favour of the acquisition.”

Adam Joseph, senior managing director, Macquarie Principal Finance Europe, said: “We are pleased that the independent directors of PTSG are recommending this takeover offer.

“We view PTSG as a highly attractive leader in its chosen specialist markets, with a strong track record of performance and reputation for quality, value and safety.

“Health and safety is an increasingly key focus for businesses and PTSG’s expertise means it will continue to play a critical role in providing safe working environments which comply with regulations and other requirements.

“We see a strong opportunity to partner with the management team in continuing to grow the business in core and adjacent markets, both organically and via strategic acquisitions, which is why we have made this compelling offer to shareholders at an attractive premium.”