REG - Croma Sec. Sol. Grp - Acquisition

Croma Security SolutionsAnnouncement

03/02/2025 07:00

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RNS Number : 5477V  Croma Security Solutions Group PLC  03 February 2025

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.

 

3 February 2025

Croma Security Solutions Group Plc

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

Acquisition of Leeds Locksmith

Croma Security Solutions Group plc (AIM:CSSG) is pleased to announce that it
has completed the acquisition of Meridian Securities System Limited
("Meridian"), a well-established, family run locksmith business based in
Horsforth, Leeds for a total cash consideration of £150,000, of which
c.£135,000 is payable immediately, with a deferred element of c.£15,000
payable over the first 9 months.  In a separate transaction, the Company
acquired a freehold retail property for a total cash consideration of
£275,000 from the vendor's pension fund.

Founded and owned by John and Kim Taylor in 2004, Meridian has been providing
locksmith services and electronic security systems to the local resident and
business community for over 20 years. Operating from a single store, as well
as providing a successful online service, Meridian has 6 employees of whom 3,
are part of the Taylor family, and all of whom will remain with the business.

For the 12 months to 31 December 2023, Meridian generated revenues of
£836,000 and profit before tax of £46,000. The net asset value of the assets
acquired from the Meridian is £15,000.

Located in Horsforth, Leeds the store extends the Croma network northwards and
is in easy reach of the Group's security centre in Bury just 40 miles away.
Meridian enjoys a high level of electronic security sales which is part of
Bury's core expertise and so the two sites should combine well and have
already begun to collaborate.

The acquisition of Meridian is part of the Group's broader strategic plan to
build a national network of modern security centres. As with previous
acquisitions, Meridian will be incorporated into the business, benefiting from
a broader product range and centralised services. The store will continue to
service the local existing customer base, as well as the wider Croma network
of commercial clients.

John Taylor, Managing Director of Meridian, said: "We have been looking to
balance our desire to realise the value in our business whilst also continuing
to work. Croma is therefore an ideal partner for us, they have a strong track
record of incorporating similar businesses to ours into the Group and they
have the skills and expertise to grow Meridian, especially in the commercial
market where historically we have struggled to meet demand. As the founder of
the business and having grown it from scratch, I'm excited to continue my
career as part of the Croma team."

Roberto Fiorentino, Chief Executive Officer, commented: "We are delighted to
welcome Meridian into the Group. The business meets all our criteria and is
therefore a strong fit. We anticipate being able to increase the profitability
of the business ensuring it quickly becomes earnings accretive and extends our
geographic reach. As importantly, we have a good pipeline of further
transactions which we are looking forward to bringing to completion."

 

 

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

 

Croma Security Solutions Group
Plc
Tel: +44 44 (0)1489 566 166

Roberto Fiorentino, CEO

Teo Andreeva, CFO

 

Zeus
 
              Tel: +44 (0)207 220 1666

(Nominated Adviser and Broker)

Mike Coe

James Bavister

 

Novella
 
          Tel: +44 (0)203 151 7008

Tim Robertson

Claire de Groot

Safia Colebrook

 

Notes to editors:

 

Croma Security Solutions is an expanding technology led security solutions
provider with over 50 years of specialist experience, delivering high-quality
security solutions across locksmith, fire and security services for both
domestic and commercial environments. The Groups network currently stands at
17 security centres, stretching from its headquarters in Southampton, across
the Midlands and up to the Northwest. Croma services a range of sectors
including health, education, leisure and entertainment, and utilities, and is
trusted by national brands, including multiple NHS Trusts, with their complex
security needs.

 

Croma's growth strategy is focused on establishing a national security
network. In 2023, it sold its man-guarding business Vigilant for £6.5m, which
has provided the capital to fund the expansion of the business. Croma is a
proven acquirer of local, traditional locksmith businesses, which are
developed into its network of modern security centres, offering both total
security solutions and locksmith services to retail and commercial customers.
The new security centres benefit from extended product ranges, centralised
group services, and both a local and national customer base. Since the sale in
2023, Croma has added new businesses to its network, and has a strong pipeline
of further locksmiths stores to be acquired into the network.

 

Croma is listed on the AIM market of the London Stock Exchange. Founded in
1970, it is headquartered in Southampton and has over 90 employees.

 

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