Mears buys Dundee ‘green homes’ firm IRT
Mears Group has acquired IRT Surveys, a Dundee-based energy efficiency and decarbonisation company, which has developed a tech platform to retrofit homes.
Decarbonisation of housing is becoming an increasingly prevalent issue amid rising energy costs and growing environmental awareness.
IRT has surveyed more than 350,000 homes and 2,000 commercial buildings, including Buckingham Palace, The White House, Reichstag and the EU Headquarters,.
The £4.1m purchase price represents close to a 11.4x multiple of IRT’s turnover and is on a cash and debt free basis.
Gloucester-based Mears is paying an initial £3m, with a contingent consideration of potentially £1.1m, which is payable over a two-year period post-completion.
The deferred consideration is subject to IRT achieving satisfactory performance in business development targets.
IRT was founded in January 2002 by brothers Stewart and Alan Little with investment from David Jones, the author of the best-selling computer game Grand Theft Auto.
In the year to 31 December 2021, IRT posted revenue of almost £400,000 and an operating loss of £100,000. It is on track to deliver £800,000 of income during the full year 2022 and an operating profit of £200,000.
Mears Group’s board has said that it sees “significant opportunities in the structurally growing field of carbon reduction”, which it says will be “complementary and additive” to the group’s existing service offering.
It added: “The requirement to decarbonise an ageing housing stock, especially in affordable housing, is accelerating in the current environment given the significant increases in energy costs, and the agenda to meet the Government’s targets of achieving Net Zero by 2050.”
Mears Group chief executive David Miles said the deal adds greater scale to Mears, and will drive its ESG agenda as well as provide a broader range of services to new and existing clients.
Green Home Festival ‘to be repeated’
Scotland’s first-ever Green Home Festival has been hailed as a resounding success, with organisers already planning next year’s event to cater for the growing interest in low-carbon construction and sustainable living.
More than 350 delegates signed up for the five days of online and in-person events organised by the Construction Industry Collective Voice (CICV).
The festival, held from 8-12 August as part of the Edinburgh Festival Fringe, saw CICV members host discussions on a range of topical subjects, including protecting against floods, using sustainable materials, switching to electric vehicles and living safely in the home of the future.
Co-organiser Gordon Nelson, Scotland Director of the Federation of Master Builders, said: “It was heartening to see such a huge interest from both the public and the construction industry, who are clearly aware of the urgency we all face in trying to tackle some of today’s pressing environmental issues.”