Five firms in discussion with Tenon

The company, set up last year, is also understood to be in talks with another 20 firms with a view to acquiring them. Its purchasing ability will be aided by plans, also announced today, to raise over £40m by placing new shares.

It is understood the firm already has an additional £20m war chest despite spending £16m on acquiring Morison Stoneham, Williams Allan Group, BKL Weeks Green and the Berkeley Jackson Group.

Ian Buckley, chief executive of Tenon, said the five deals should be finalised ‘in a matter of weeks.’

‘The new funds available to us will enable us to progress our acquisition programme, to complete the integration of all acquired businesses and to develop common practice and management systems.

‘If all five of the potential acquisitions currently at an advanced stage reach completion, Tenon will double its annualised acquired turnover to more than £60m. We are therefore well on the way to meeting our target of £100m of turnover within two to three years of formation.

Buckley, added: ‘One year after the initial £50m fund raising it is clear that the concept of becoming the service provider of choice for medium-sized businesses and their owners throughout the UK is rapidly becoming a reality.’

If the five acquisitions go through, the non-audit turnover will be worth £30m – two are ‘substantial’ businesses and are based in separate regions of the UK where Tenon does not currently have a presence. It is thought the North-East and North-West are areas Tenon want to enter.

The placing and open offer of 31,269,945 shares will raise approximately £39.2m after expenses and is being made by Numis Securities on the basis of 46 new shares for every 100 Tenon shares currently held, at 130p per share.


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