27th Mar 2015 14:34
LONDON (Alliance News) - H C Slingsby PLC said Friday that it has acquired industrial equipment supplier ESE Direct Ltd for GBP3.9 million, funded from cash and asset-backed debt.
The company said that it is a condition of the acquisition that ESE has GBP600,000 in cash at completion, which it considers is surplus to requirements. As such, ESE is being acquired for a consideration of GBP3.3 million.
H C Slingsby said that the acquisition will help diversify its brand portfolio, and will immediately contribute to profit and add economies of scale.
ESE posted a pretax profit of GBP351,577 for 2014 on revenue of GBP6.5 million.
"We have been looking at suitable targets for some considerable time and ESE Direct is an excellent fit. The incremental profitability and synergistic benefits will place the wider group in a far stronger position for both companies to better exploit opportunities in their respective market sectors," said Managing Director Dominic Slingsby in a statement.
Shares in the company are untraded Friday. It last traded at 378.75 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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