17th Feb 2014 09:29
LONDON (Alliance News) - Nationwide Accident Repair Services PLC Monday said it has acquired North West-based automotive crash repair services chain Howard Basford for an initial GBP4.1 million in cash, a deal it expects to boost its earnings straight away.
Nationwide said a further contingent consideration of up to GBP1.8 million in cash is dependent on the acquired business attaining certain performance criteria.
The total consideration will be funded from Nationwide's own resources and the acquisition is anticipated to be earnings enhancing during 2014.
Howard Basford, which provides automotive repair services to motor insurers, consumers and fleet operators, posted revenues of GBP16.0 million in 2012, while its net assets stood at GBP1.4 million.
Naitonwide said the deal will boost its presence in its target markets of insurance, fleet and retail.
"[The acquisition] enables us to jointly offer our customers an increasingly efficient and comprehensive service in the North West region and assists us in our objectives to build our presence in our three target markets of insurance, fleet and retail," Chief Executive Michael Wilmshurt said in a statement.
The stock was trading at 76.00 pence Monday morning, up 2.00 pence or 2.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
NARS.L