Siteserve plc has announced its intention to buy Kildare company Roankabin Holdings ltd for €6 million.
Roankabin, based at Kill, Co Kildare, is a leading provider of modular accommodation to the Education, Healthcare and Pharmaceutical sectors.
In a statement released today Siteserv said the consideration for the acquisition comprises an initial payment of €6 million on completion, €4.9 million of which will be in cash with the remainder being satisfied through the issue of 1,981,132 Siteserv ordinary shares at €0.53.
Additional amounts will be payable based on the financial performance and levels of growth in profitability of Roankabin over it's next three years up to 30 June 2010.
The maximum additional consideration payable under these arrangements has been capped at €2.0 million.
In the year ended 31 December 2006, Roankabin had audited turnover of €13.2 million and earnings before interest and tax of €0.9 million. Net assets at completion are expected to be approximately €5.4 million.
The vendors Patrick McEvoy and Gerard Diggins are continuing in their executive roles with the company.
Commenting on the acquisition, Brian Harvey, Chief Executive of Siteserv said: "We are delighted with the acquisition of Roankabin which is a leader in the provision of modular accommodation to the Education, Healthcare and Pharmaceutical sectors all of which are experiencing unprecedented growth."