Croma Security Solutions Group acquires Meridian Security Systems

The deal has been agreed for a total cash consideration of £150,000, of which circa £135,000 is payable immediately, with a deferred element of circa £15,000 payable over the first nine months.

In a separate transaction, Croma Security Solutions Group plc has acquired a freehold retail property for a total cash consideration of £275,000 from the vendor’s pension fund.

Founded by owners John and Kim Taylor in 2004, Meridian Security Systems Limited has been providing locksmith services and electronic security systems to the local business community and residents for over 20 years. Operating from a single store, as well as providing a successful online service, the company employs six members of staff, three of whom are part of the Taylor family. All will remain with the business.

Revenue figures

For the 12 months to 31 December 2023, Meridian Security Systems Limited generated revenues of £836,000 and a pre-tax profit of £46,000. The net value of the assets acquired from Meridian Security Systems Limited is £15,000.

This acquisition extends the Croma Security Solutions Group plc network northwards and is in easy reach of the Group’s Security Centre located in Bury, which is only 40 miles away.

Meridian Security Systems Limited enjoys a high level of electronic security sales, which is part of Bury’s core expertise. On that basis, the two sites should combine well and, in fact, have already begun to collaborate.

The acquisition of Meridian Security Systems Limited is part of Croma Security Solutions Group plc’s broader strategic plan to build a national network of modern Security Centres. As has been the case with previous acquisitions, Meridian Security Systems Limited will now be incorporated into the business, in turn benefiting from a broader product range and centralised services.

Meridian Security Systems Limited will continue to service the local existing customer base, as well as the wider Croma Security Solutions Group plc network of commercial clients.

Strong track record

John Taylor, managing director of Meridian Security Systems Limited, said: “We’ve been looking to balance our desire to realise the value in our business, while also continuing to work. Croma Security Solutions Group plc is therefore an ideal partner for us. The company boasts a strong track record of incorporating similar businesses to our own and harbours the skills and expertise for us to grow, notably in the commercial market where, historically, we’ve struggled to meet demand. As the founder of the business, I’m excited to continue my career as part of the Croma Security Solutions Group plc team.”

Roberto Fiorentino, CEO at Croma Security Solutions Group plc, responded: “We’re delighted to welcome Meridian Security Systems Limited into the Group. The business meets all of our criteria and is a strong fit. We anticipate being able to increase the profitability of the company, ensuring that it quickly becomes earnings accretive and extends our geographic reach. Just as importantly, we have a good pipeline of further transactions, which we are now looking forward to bringing to completion.”

*Further information is available online at www.cssgplc.com