Wickes Group plc (LSE:WIX) agreed to acquire 51% stake in Gas Fast Limited for £41.1 million on March 19, 2024. Wickes will acquire the 51% equity stake from the Solar Fast founders based on a valuation for 100% of the Business of 7x EBITDA delivered in calendar year 2024, with a minimum valuation for 100% of the Business of £10.0m and a maximum of £36.0 million, on a debt-free, cash-free basis. Wickes will pay £5.1 million at completion of the Transaction as a minimum payment for the 51% equity stake, with the balance to be paid in early 2025.

Wickes will fund the purchase price from existing cash reserves. Wickes has an option to purchase the remaining 49% of the issued share capital of the Business. This option may be exercised during the five years following completion, in tranches of not less than 10% of the issued share capital, and is based on a pre-agreed valuation based on 6x LTM EBITDA at the time.

In the twelve months to 30 April 2023 the Business generated revenue of £33.1 million and reported profit before tax of £3.9 million. As of 30 April 2023 the Business had gross assets of £5.9 million and net assets of £3.8 million. The Founder and CEO of the Business, David Draper, will continue to lead the development and growth of the Business in collaboration with the Wickes team, who will help bring the Solar Fast proposition to Wickes customers in store and online.

Since the Business offers financing solutions to customers and is regulated by the FCA, the transaction will be subject to FCA approval. We expect this approval to be granted in the coming weeks.