18th Jun 2018 09:34
LONDON (Alliance News) - Fishing equipment retailer Angling Direct PLC said Monday it has acquired Ted Carter Fishing Tackle in Lancashire for GBP125,000 in cash.
Angling Direct said the deal values the firm at "approximately two times" annual earnings before interest, taxes, depreciation and amortisation. Angling Direct didn't said what Ted Carter's Ebitda was, but the price would imply about GBP60,000. It said Ted Carter's revenue for the financial year ended March was GBP1.2 million.
For the financial year ended January, Angling Direct itself generated GBP159,000 pretax profit on GBP30.2 million revenue.
Angling Direct will pay GBP125,000 in cash as well as payments for stock at valuation.
Ted Carter - which will be re-branded as Angling Direct Preston - includes a 3,000 square foot store situated in Preston, Lancashire. The store is located near to major motorways and "key" angling venues. Angling Direct now has 22 stores.
"Ted Carter Fishing Tackle is a very well established and successful business, with a loyal customer base and knowledgeable team," Angling Direct Chief Executive Officer Darren Bailey said. "We expect the acquisition will be earnings enhancing from day one and validates Angling Direct's long-term strategy - to consolidate the fishing tackle market whilst expanding our business through acquisition into new areas of the country with a strong angling demographic."
Shares in Angling Direct were 1.7% higher at 106.76 pence on Monday.
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