REG - Croma Sec. Sol. Grp - Acquisition

Croma Security SolutionsAnnouncement

06/07/2022 07:00

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RNS Number : 4263R  Croma Security Solutions Group PLC  06 July 2022

6 July 2022

Croma Security Solutions Group Plc

("Croma", "the "Company" or the "Group")

Acquisition

Croma Security Solutions Group plc (AIM:CSSG), the security services provider
is pleased to announce that it wholly owned subsidiary, Croma Locksmiths and
Security Solutions Limited ("Croma Locksmiths"), has acquired Southern
Stronghold Limited  ("Stronghold" or the "Acquisition") for a consideration
of £964,569.10.

Acquisition consideration

Croma Locksmiths has acquired the entire issued share capital of Stronghold
from its family owned parent company, Stronghold Trading Group Limited for a
consideration of £964,569.10. The consideration comprises a cash payment of
£700,000 payable on completion plus deferred consideration of £264,569.10
payable on or before 4 September 2022. The deferred consideration reflects the
cash in Stronghold at completion of £124,569.10 plus additional consideration
of £140,000.

Information on the Acquisition

Stronghold is a long-standing locksmith business that operates from two
freehold premises, one in Coventry and a second near Southampton in Totton.
Coventry is the larger of the operations and is a main Assa/Abloy service
centre and provides a large number of  Master Key systems to local
businesses. Stronghold also has an on-line business "Stronghold Direct".

For its year ended 31 March 2022 Stronghold recorded revenue of £0.5 million
and a profit before tax of £39,000. Adjusting for non-recurring items the
Directors believe the profits were £108,000. As of 30 June 2022, Stronghold
had net assets of £0.926 million.

Benefits of the Acquisition

Croma's strategy has been and remains to create a nationwide network of Croma
Security centres. The Acquisition will extend the geographic reach of the
Group and through its Coventry site provide a base from which Croma can
better service, support and expand existing client relationships with those
that have operations in the Midlands. The Coventry Master key
systems capability and its many clients provides access to long
term client relationships and reoccurring revenue.

The Totton site provides a locksmithing service to the local community and is
well known in the area. Established with local authorities and some clients
further afield that place their trust in Southern Strongholds long standing
reputation for products and services.

"Stronghold Direct" will help the Group and Croma Locksmiths to market and
sell products under a different trading name on-line, an
increasingly essential option for clients.

Commenting on the Acquisition, Roberto Fiorentino, CEO of Croma, said: This
is another important acquisition in our drive to improve coverage of the Croma
Security Centres services. Coventry will certainly bridge a gap between the
previous acquisition of Safeguard near Manchester and our other branches in
the South. The business has been known to us for many years with a solid
reputation that matches the Croma ethos.

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

For further information visit www.cssgroupplc.com or contact:

 

Croma Security Solutions Group
Plc
         Tel: +44 (0)783 4482400

Roberto Fiorentino (CEO)

 

WH Ireland
Limited
Tel: +44 (0)207 220 1666

(Nominated Adviser and Broker)

Mike Coe

Jessica Cave

Sarah Mather

 

Novella
Tel: +44 (0)203 151 7008

Tim Robertson

Fergus Young

 

 

 

 

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