Dains Corporate Finance provides due diligence services to REACT Group plc

Deal summary

The Dains Corporate Finance team have recently undertaken financial due diligence on Fidelis Contract Services Limited for the purpose of the acquisition by REACT Group plc.

Fidelis is a successful commercial cleaning, hygiene and facility support services company headquartered in Birmingham providing services to customers across England and Wales. Fidelis provides services ranging from daily housekeeping and washroom hygiene services through to building and caretaker services. It also provides specialist services such as kitchen and duct cleaning, industrial deep cleaning, pest control and barrier matting for flooring in buildings. Fidelis provides services to a diverse range of sectors with a particular strength in education, healthcare and associated industries.

REACT, the leading specialist cleaning, hygiene, and decontamination company was created over 20 years ago to provide a dedicated 24/7 services to the public sector. This maiden acquisition, which is expected to be immediately earnings enhancing, represents an important step in the Company’s stated growth strategy.

Roy Farmer and Rob Wilson of Dains LLP undertook the financial due diligence on Fidelis which included a review of their financial performance for the last two years and YTD management accounts, a review of the balance sheet for the last two years, and review of the normalised working capital and net debt position, and a review of the forecasts for the following financial year.

What our client said

Andrea Pankhurst of REACT said “We recently appointed Dains to act as our advisers, and we were pleased with the information and analysis which Dains provided for us, which allowed us to negotiate the SPA from a stronger position of understanding. Dains produced a report in line with our timetable for the deal and we were very satisfied with their work.”

What we said

Rob Wilson of Dains LLP said “It was fantastic to be able to work with REACT, and support them on their first acquisition. We were able to scope the work out to ensure we reported on the key areas for REACT to understand, as well as providing additional support throughout the SPA stage. We look forward to working with REACT again in the future.”