McBride PLC Acquisition of Danlind a/s (6615P)
September 04 2017 - 2:00AM
UK Regulatory
TIDMMCB
RNS Number : 6615P
McBride PLC
04 September 2017
4(th) September 2017
McBride plc
Acquisition of Danlind a/s
McBride plc ("McBride" or the "Group"), the leading European
manufacturer and supplier of Co-manufactured and Private Label
products for the Household and Personal Care markets, announces
that it has agreed to acquire Danlind a/s ("Danlind"), a supplier
of auto dish-wash and laundry products, based in Denmark (the
"Acquisition").
Danlind provides McBride with access to accelerated growth in
the key strategic category of auto dish-wash tablets, through its
well invested capacity, technology platform and high quality
product range. Danlind has a significant range of retail and
contract customers along with a well-established position in the
Nordic region and in the commercial laundry and dish-wash markets.
Danlind will enable McBride to gain entry into growth segments
where it is currently under represented. Additionally, Danlind's
strong position in Ecolabel products can be developed further
through McBride's extensive European reach.
Danlind operates from three manufacturing sites in Denmark, and
has approximately 250 employees. For the year ended 31 December
2016, Danlind reported revenues of GBP58.4 million, EBITDA of
GBP1.6m, a loss before tax of GBP1.3 million, and had gross assets
of GBP48.0 million as at 31 December 2016(1) . For its financial
year ending 31 December 2017, on a standalone basis, Danlind is
currently expected to generate c. GBP2.5million of EBITDA(1) .
McBride expects to realise significant commercial, technical and
operational improvement synergies from the acquisition. The
acquisition is expected to be immediately earnings enhancing for
the Group. Post-tax return on invested capital is expected to meet
cost of capital in the third full year of ownership.
Consideration of GBP10.8 million(1) will be payable to the
shareholder of Danlind, Lind Holdings ApS, and c. GBP28 million(1)
of net debt in Danlind will be assumed by McBride at completion.
The acquisition will be funded from McBride's existing banking
facilities.
The Acquisition, which is subject to customary regulatory and
closing conditions, is expected to complete in early October
2017.
On completion, Danlind, the management team and its employees
will form part of the Household products segment.
Rik De Vos, Chief Executive Officer, commented;
"With this acquisition, the combined resources and knowledge of
the two companies will provide McBride with accelerated growth in
several key categories and geographies and enable us to access new
customers. The excellent operational and cultural fit between both
companies gives the Board confidence that the integration of
Danlind will be executed efficiently. This is a significant next
step in the development of our strategy and will further support
McBride's leading position in its chosen markets, whilst providing
our customers with an increasingly better proposition."
1 - Exchange rate of GBP1 = DKK 8.1194 as at 1 September
2017
For further information please contact:
McBride plc 0161 203 7570
Rik De Vos, Chief Executive
Officer
Chris Smith, Chief Financial
Officer
FTI Consulting 020 3727 1017
Ed Bridges, Nick Hasell
Forward-looking statements
This announcement contains forward-looking statements with
respect to the financial condition, results and business of McBride
plc. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events, and depend on
circumstances, that will occur in the future. McBride's actual
future results may differ materially from the results expressed or
implied in these forward-looking statements. Nothing in this
announcement should be construed as a profit forecast.
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation which came
into effect on 3 July 2016.
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQZMGGLNFZGNZM
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