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Mears Grp Acquires IRT Surveys in UK
Monday 15 August 2022

UK-based housing sector services provider Mears Group plc (LSE: MER) has acquired IRT Surveys Ltd for a total consideration of up to GBP 4.1m (USD 4.95m), the group said.

Headquartered in Dundee, IRT provides a range of data-led services focussed on addressing fuel poverty, decarbonisation and energy efficiency.

IRT has developed over several years a proprietary technology platform.

DREam has been engineered to simplify and accelerate the domestic property retrofit journey, by assessing the energy performance of housing portfolios, optimising budgets and providing solutions on the most efficient way to complete retrofits, within the affordable housing sector.

IRT is well-known and respected in the sector, with over 30 Registered Social Housing provider clients spanning the UK and having surveyed over 350,000 domestic properties.

IRT will continue to service existing IRT clients.

In addition, IRT has an active sales pipeline underpinning its growth forecast, which will be enhanced further upon joining the group and through the opportunities that will subsequently exist.

The board believes there are significant opportunities in the structurally growing field of carbon reduction, which will be complementary and additive to the services already provided by Mears.

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.

Acquiring the innovative IRT platform is a part of the group's retrofit solution and will enable Mears to conduct stock analysis modelling for carbon reduction work, enabling opportunities to be progressed quickly, and to help identify and access grant funding support available.

IRT is being acquired on a cash free, debt free basis, consisting of an initial consideration of GBP 3m, and subsequent contingent consideration of up to GBP 1.1m, payable over a two-year period following completion, subject to satisfactory performance against business development targets.

The acquisition consideration will be settled in cash and funded out of Mears' existing cash resources.

Mears is the provider of services to the Affordable Housing sector in the UK: responsible for the maintenance of c.10% of the UK's social housing stock; and managing over 10,000 homes for local and central government.

Mears currently employs around 5,500 people and provides services in every region of the UK. In partnership with our Housing clients, we maintain, repair, and upgrade the homes of hundreds of thousands of people in communities from remote rural villages to large inner-city estates.
Date Published: 15/08/2022