APC Technology Group PLC Acquisition of EuroTech (Export) (8883B)
June 12 2019 - 2:00AM
UK Regulatory
TIDMAPC
RNS Number : 8883B
APC Technology Group PLC
12 June 2019
12 June 2019
APC Technology Group PLC
("APC" or the "Company" or the "Group")
Acquisition of Euro-Tech (Export) Limited
APC Technology Group PLC (AIM: APC), the provider of design-in,
specification and distribution services for specialist electronic
components and systems, lighting technologies and connectivity
products, is pleased to report that it has completed the
acquisition of Euro-Tech (Export) Limited ("Euro-Tech"), a
distributor and international reseller of electronic
components.
Euro-Tech sources and supplies a wide range of active, passive
and electromechanical components, industrial products and
consumables from major global manufacturers and quality assured
sources across Europe to blue chip OEM and CEM customers around the
world.
Euro-Tech's products and services are complementary to APC's
Locator business and will significantly enhance APC's capability in
the sourcing of hard to find or obsolete and end of life
components, products and systems. The previous owners and founders
of Euro-Tech, Chris Smallwood and Phil Hutchins, will continue to
work within the business, reporting to APC's Chief Executive,
Richard Hodgson. Chris will assist with integrating the business
for a period of time before retiring, while Phil will continue in
his role as Sales & Marketing Director, driving the business's
sales growth across the enlarged Group.
For the 12-month period ended 30 April 2019, Euro-Tech's
unaudited results will record revenues of GBP2.2m, gross profit of
GBP0.75m, an adjusted EBITDA of GBP0.2m, a profit after tax of
GBP0.1m and net assets of cGBP0.6m. It is expected that its
profitability will increase following integration into the Group's
business with the realisation of potential efficiency and revenue
synergies.
The consideration payable will be GBP1.05m of which GBP0.165m
represents cash at completion in Euro-Tech and GBP0.14m is derived
from excess working capital. 50% of the purchase consideration is
payable on completion, 25% in monthly instalments over twelve
months and 25% twelve months after completion. The Euro-Tech
balance sheet at completion includes GBP0.35m of trade debtors,
which will be rolled into the APC invoice finance facility with ABN
and hence the transaction will be funded through the Group's
existing financing facilities.
Richard Hodgson, CEO of APC Technology Group, commented:
"As we reported in our recent interim results, our strategy is
built on three main growth drivers: growth through increased
bookings from our existing technologies; growth through the signing
of new complementary product lines; and growth through targeted
bolt-on acquisitions.
With regard to the third strand of that strategy, the purchase
of Euro-Tech is our fourth acquisition in 18 months and I am
delighted to welcome Chris, Phil and the Euro-Tech team to APC.
Combining Euro-Tech's capabilities alongside our APC Locator
business will provide a significant boost to our offering in the
growing market for the sourcing of hard to find and obsolete
electronic components and products. It will also provide us with
opportunities to sell our UK business into a broader customer base
and provide our other international franchises with opportunities
in a wider global marketplace."
Enquiries:
APC Technology Group PLC +44 (0) 330 313 3220
Richard Hodgson, Chief Executive www.apcplc.com
Shore Capital (Nominated Adviser and Broker) +44 (0)20 7601
6100
Mark Brown / Antonio Bossi
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END
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