Northern Bear buys again: A1 Trucks and DJ McGough

Northern Bear has nailed two more acquisition deals at a total cost of £6.7m.

Northern is a holding company for a growing portfolio of north-of-England based building service companies.

Coming into the fold are A1 Industrial Trucks and D J McGough.

A1 Trucks operates a fleet of 400 forklift trucks which it sells, leases, rents and maintains for a range of customers.

Derek Wymes and Graeme Tennick, the pair who founded the business are staying on in their leading roles.

Established in 1983, A1 Trucks is based in Newcastle upon Tyne.

Turnover in the 12 months to April 2007 ran to £3.3m and pre-tax profit was £790,000. Net assets stood at £2.2m.

The deal cost £4.7m. This will be paid in the form of £3.5m in cash plus the issue of 960,000 new shares.

DJ Gough provides plumbing, heating and mechanical services across the North East. Also based in Newcastle, it has 47 employees and was established in 1988.

In the 12 months to 31 December 2007, pre-tax profit ran to £290,000 and turnover was £2.7m. It had net assets of £900,000.

Northern has paid £2m and payment comes again by way of a two-way split consisting of £1.5m in cash and 550,000 new shares.

Both tranches of new shares will hit the stock Market on 7 April.

Jon Pither, chairman of Northern, said these were his fledgling company’s eleventh and twelfth additions to its rapidly growing portfolio.

Pither added that they reflect a policy “to continue to develop business away from the cyclical ‘new build’ housing sector which is expected to contribute less than 15% of Northern Bear’s turnover in the current financial year”.