1st Feb 2019 08:53
LONDON (Alliance News) - Midwich Group PLC on Friday said it has entered into a binding agreement to acquire 80% of Prase Engineering SpA, an Italian distributor of audiovisual products.
The purchase price comprises an initial cash consideration of EUR7 million, followed by four fixed payments of an aggregate of EUR6.4 million over the next two years. The acquisition is expected to be earnings enhancing in the first full year, the company said.
Midwich, which distributes audiovisual products in the UK, said the acquisition of Prase marks Midwich's entry into Italy. The newly acquired business will be run by its founders Alberto and Ennio Prase, undertaking roles of sales director and managing director, respectively.
In 2017, Venice-based Prase generated pretax profit of EUR2.2 million on revenue of EUR20.4 million.
"This acquisition adds to the group's already formidable capability in the European professional and installation audio sectors," said Midwich Managing Director Stephen Fenby.
"We believe that with the acquisition of Prase, Midwich now has a presence in countries representing over 80% of the European audiovisual market, added Fenby.
Midwich shares were untraded on Friday, last closing at 555.00 pence each.
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