4th Jan 2016 07:42
LONDON (Alliance News) - Building products manufacturer Epwin Group PLC on Monday said it has bought Stormking Plastics Ltd for GBP35 million in cash and shares.
Epwin will pay GBP20.3 million cash at completion, plus 5.3 million shares at 126.2 pence each. A further consideration of up to GBP8 million may be paid in the same ratio of cash to shares as the initial consideration dependent upon Stormking's performance in the year to February 28, 2017.
Epwin shares closed Thursday last week at 129.62p, down 1.4%.
In financial 2015, Stormking made revenue of GBP22.8 million and underlying earnings before interest, tax, depreciation and amortisation of GBP3 million. In the current year to end-February 2016, Stormking is expected to deliver a turnover of GBP25 million and underlying Ebitda of GBP4.5 million, Epwin said.
Epwin will pay the cash using its existing bank facilities, which were recently renewed to increase available facilities to GBP50 million.
Epwin added that despite challenging market conditions in the second half of 2015, its profit for the full year will be in line with market expectations. Epwin's financial year coincides with the calendar year.
"Stormking adds further to the group's range of low maintenance building products as well as the plastics materials technologies that we can draw upon. The acquisition represents a further significant step in the development of the group and is expected to enhance earnings in 2016," Chief Executive Jon Bednall said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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