Marlowe PLC drops takeover approach for Restore PLC

() () said it does not intend to make a firm offer for () (), the document management and relocation specialist, as it does not believe a deal can be reached on financial terms that would be in the best interests of its shareholders.

Services and software group  () announced an unsolicited approach in July regarding a possible 530p-a-share offer for the business, valuing Restore at £743mln.

READ: Battle underway for control of Restore as Marlowe bids rejected

Restore issued a brief response today.

“We have made significant strategic progress in 2021, alongside a sustained recovery from the impact of the pandemic, becoming a larger, stronger and growing business,” said Martin Towers, non-executive chairman of Restore.

“We were delighted to have received such strong support from our shareholders through this process and are committed to generating sustainable long-term value for them and all of our stakeholders, through the continued delivery of our strategy.”

Marlowe, which has spent £182mln on 22 acquisitions in the last 12 months, said its board continues to believe that a combination of the two companies would have been strategically compelling.

It added that its current run rate revenues are approximately £290mln and the group has been trading ahead of the board’s expectations in the first half of its financial year.

“Following recent acquisitions, group run rate adjusted EBITDA is currently approaching £50mln, up from £37mln as announced in our Capital Markets Day and trading update of 17 February 2021,” it said.