Wakefield based security installation and maintenance company HS Security Services Limited has furthered its expansion plans by acquiring one of its competitors based in Dewsbury DMG Security Systems Limited for an undisclosed sum.
Harrogate based commercial law firm Davidson Webber LLP acted for HS Security Services Limited. Tax and accounting advice and due diligence on the target business was provided by Nick Duxbury of Integra Corporate Finance in Leeds. The vendors of DMG (Dean and Joanne Gibbs) were advised by Holroyd & Co solicitors of Huddersfield and Greenwood Barton accountants of Heckmondwike.
The deal which sees the two business now team up together to consolidate their presence in the Yorkshire market and provide a more comprehensive security installation and maintenance service. The acquisition sees DMG’s huge client base (and the significant maintenance revenue stream that generates) move over to HS Securities. One of the vendors (Dean Gibbs) will stay on with H S Securities as a consultant for a short while following completion to assist in a smooth handover and with the usual post deal transitional arrangements.
Richard Hemmill (managing director, owner, and founder of HS Securities commented “This is an excellent acquisition for us. Dean Gibbs has a tremendous reputation having worked in the industry for the past 20 years and he has built up the successful DMG business and operations on the back of that. DMG has a very good and loyal customer base. This acquisition will give us more critical mass and consolidate our position in Yorkshire. From here we will continue to expand and branch out with a number of further acquisitions going forward”.
Neil Large corporate partner at Davidson Webber LLP said “this was an interesting deal whilst it took the form of a purchase of the entire issued share capital of DMG it had to be structured as an asset sale with the vendors retaining responsibility for all matters pre-completion during their ownership. To achieve this required retention of purchase price provisions, indemnities from the vendors, a certain level of cash and debtors in DMG at completion and a warranted set of accounts as at completion”.
“Richard Hemmill is a talented ambitious individual who knows where he wants to be and where he wants to take his business. He is keen to drive his company forward with further expansion plans and I am looking forward to working him on other acquisition opportunities which he has in the pipeline” Neil added.
