Price Bailey assist Flagship on a further acquisition to extend its commercial offering

Flagship Group provides affordable, market rent, shared ownership, and homes for sale across the East of England.

They own, manage and maintain over 22,500 homes and provide facilities, repairs and maintenance services to other housing providers and local authorities.

The Group has a turnover of £135m and is continuing to increase its commercial activity. It has achieved this through identification of a number of suitable acquisition targets, based upon desired criteria, as potential bolt-on opportunities for its existing gas maintenance and installation operations. Operating profits are reinvested back into the business, supporting its purpose of ‘providing homes for people in need’.

Having identified Blue Flame (Colchester) Limited as a potential match, Price Bailey assisted Flagship Group with the confidential approach to Blueflame from which commercial discussions commenced, resulting in the proposed acquisition. As part of the services provided, Price Bailey undertook financial due diligence on Blueflame across a range of key financial and commercial risk areas identified.

Lead advisory services were also provided throughout the deal process, from providing initial valuation appraisal, negotiating heads of terms and input on key aspects of the deal negotiations, including completion accounts mechanism and financial support on the legal documentation.

Price Bailey supported the internal Mergers and Acquisitions team at Flagship Group, providing ad hoc oversight and key technical input.

On 1 November 2018 final legal documents were exchanged and the successful acquisition was completed. Despite several challenges along the way, both parties are excited about the future opportunity this deal presents.

Andrew Yuill, Director of Business Growth at Flagship, said: “Price Bailey was adaptable in their approach to this particular deal, having worked with Stephen and the team on a number of previous acquisitions. The Flagship team were able to work closely with Price Bailey, calling for added input where required. We are thrilled to welcome Blueflame to the Flagship Group and hope this is a relationship which will flourish.”

Stephen Reed, Partner at Price Bailey in the Strategic Corporate Finance team, commented:
“We are delighted to have been involved in this transaction, working closely with Flagship to achieve this positive outcome. Flagship is a highly valued client and we look forward to continuing our relationship with further support of their ambitious plans.”