Siteserv to pay up to €8m for prefab firm Roankabin

Quoted building services group Siteserv is buying prefab building provider Roankabin in a cash and shares deal worth a potential €8 million.

Siteserv said yesterday that it will pay an initial €6 million for Roankabin, made up of €4.9 million in cash and the issue of 1.98 million Siteserv shares at 53 cent each. The deal includes an earn-out clause tied to the growth and profitability of Roankabin, over the next 2½ years, which is worth up to €2 million more.

The main beneficiaries of the deal are Patrick McEvoy and Gerard Diggins, Roankabin's shareholders and directors. They each own 50 per cent of Roankabin's shares.

Under the deal's terms, the pair will not be allowed to sell their Siteserv shares for a year. Siteserv said yesterday that both men, who are Roankabin's joint managing directors, will continue to manage the company.

Siteserv is applying to have the new shares admitted to the Irish Stock Exchange's IEX market for developing companies, and to London's Alternative Investment Market.

Roankabin provides permanent and semi-permanent buildings that are factory-made and assembled on site. The structures are frequently used on building sites as offices, storage facilities and for other purposes. It also supplies the healthcare, education and pharmaceutical markets.

Last year, Roankabin's reported turnover of €13.2 million and it had earnings before interest and tax of €900,000. Siteserv expects the deal to increase its net assets by €5.4 million.

Siteserv provides support services such as fencing and scaffolding. Chief executive Brian Harvey founded the business, which floated on the Irish Stock Exchange last year. Its backers include corporate financier and developer Niall McFadden.

Commenting on the Roankabin deal yesterday, Mr Harvey said it was a "further implementation of the group's strategy to expand its product and service base by acquiring businesses that are recognised as leading companies in their sectors".