Building maintenance and related support services company Mavinwood is to buy damp and water proofing company Peter Cox for an initial £6 million payment.

This first payment will be followed by up to £1.05 million depending on Peter Cox’s EBITA performance in the 12 months to December.

The acquisition is being funded by Allied Irish Banks and Fortis Bank. The deal is expected to close on September 28 is expected to be on 28 September 2007, with the acquisition expected to be earnings enhancing next year.

In the year to December 2006, the company generated sales of £16 million and a pre-tax profit of £500,000 and its net assets were £26.7 million, but now stand at some £2.4 million following a re-organisation at the company.

Peter Cox also provides timber preservation and wall stabilisation for residential, commercial and public properties in the UK. The company has a network of 14 branches in England, Scotland and Wales and employs 210 people.