Industrial engineering group Southern Bear has increased its presence in the social housing repair and maintenance market following the reverse takeover of heating systems maker Fenhams Contracts.

Industrial engineering group Southern Bear has increased its presence in the social housing repair and maintenance market following the reverse takeover of heating systems maker Fenhams Contracts.

Southern Bear paid £3 million and £750,000 worth of shares for the business, with the agreement including further payments of up to £3.75 million.

The cash part of the deal was financed by a £3.13 million placing and through debt provided by Clydesdale Bank.

“We are delighted to have the continued support of our bank and key shareholders and believe this further demonstrates confidence in our business strategy,” Southern Bear chairman Jon Pither said.

The vendors received legal advice on the terms of the disposal from Peter Waldron, a partner at Waldrons.

Waldron, who was supported by Jane Lewis, said the firm was introduced to Fenhams by a previous client. “Having been instructed in September 2007, our commercial team displayed tenacious project management skills due to the complexity and duration of the deal, coupled with difficult market conditions.”