Interior Services Group (ISG) has bought an 85 per cent stake in Realys Group, a Shanghai-based design and project management company, in a deal worth up to RMB 58.5 million (£5.6 million).

Interior Services Group (ISG) has bought an 85 per cent stake in Realys Group, a Shanghai-based design and project management company, in a deal worth up to RMB 58.5 million (£5.6 million).

The construction and building fit-out providers will pay an initial £2.4 million on completion of the transaction, with an additional £2.5 million payable each year for the next three financial years. The subsequent payment is conditional on the business meeting certain profit before tax targets.

Under the terms of the deal, vendors Benoit Greindl and Eric Goraieb will remain with the Realys and retain the remaining 15 per cent of the shares.

The deal is part of an international ‘buy and build’ expansion strategy by ISG being implemented by chief executive David Lawther.

Lawther comments: ‘The Realys acquisition is part of our continued international expansion and we are delighted to have this capability within ISG.

‘The acquisition will widen our international client base and provide a broader service offering to our clients in China and Hong Kong.

Realys supplies fit-out services and has clients including Porsche, Peugeot, Arkema and Sodexho. Recent projects include construction work at the Shanghai World Expo.

The acquisition will allow ISG to make faster progress in the supply of its services to the manufacturing, distribution and research and development sectors, according to a statement from the company.

ISG state that if the performance targets are not met by Realys, the deferred payments will be reduced to a maximum of £760,000 in each of the first two years and £620,000 in the final year.