ISG plc (“ISG” or the “Group”), the international construction services group, today announces that it has acquired a further 49% interest in ACE, its Brazilian fit out partner from the existing shareholders Mr Marcelo Amarante (CEO) and Mr Edo Rocha. ISG acquired 20% of ACE in June 2013 with an option to acquire the remaining 80%, and now owns 69%.
ACE provides office fit out and refurbishment services in Brazil’s two largest cities of Sao Paulo and Rio de Janeiro and comprises two companies: ACE-Engenharia e Construções Ltda and Draw Serviços de Engenharia Ltda.
The consideration, which was settled in cash, for this 49% was £335,000. ISG has also agreed to acquire the remaining 31% of ACE from the remaining shareholder Mr Amarante over a period of three calendar years ending 31 December 2018, subject to performance. The minimum consideration for this remaining 31% is £650,000 and the maximum consideration is £5m.
The revenue of ACE for the year ended 31 December 2014 was £7.3m with a profit before tax of £72,000. At 31 December 2014 the combined net assets of the businesses were £170,000.