Rok expands with £17m Avonside Services Group buy

Rok has bought Avonside Services Group for £17m. The price tag comprises £12m in cash and 2.4 million Rok shares.

Avonside provides plumbing, heating and electrical services and operates from four offices. It has 450 employees, of whom 330 are either Corgi or NICEIC-registered skilled tradesmen.

The four bases include Leigh in Lancashire and Cottingham near Hull. The third office is in Billingham, Cleveland, and it has a Scottish base in East Kilbride, Lanarkshire.

In the year to the end of 2006, turnover of £42m produced a pre-tax profit of £2.2m. Net assets stand at £4m.

Rok chief executive Garvis Snook said: "Avonside is a high-quality business with a strong management. It will expand our own labour force where our preference for direct delivery of services is key to customer satisfaction and margin growth."

Steve Sayers, chairman and managing director of Avonside, said: "This provides us with the resource to expand our successful business model."