The strategic rationale for this transformational acquisition is to significantly expand the Group’s B2B service range and establish a scaled operational platform in Continental Europe. Pirtek provides a high-quality infrastructure of service centers and mobile vans that Franchise Brands intends to use as a launchpad for its existing brands into new European markets. The transaction advances the board's goal of becoming a diversified international franchisor with balanced geographic revenue. To finance the deal, Franchise Brands utilized a combination of a £90 million equity placing, a £55 million term loan, and a £55 million revolving credit facility. The acquisition integrates a business with a 19% 5-year CAGR in underlying profits, providing immediate accretion to group earnings and strengthening its portfolio of mission-critical services.

PIRTEK EUROPE, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the average currently observed in the Business Services sector (11.3x).

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