18th Sep 2014 09:47
LONDON (Alliance News) - Nationwide Accident Repair Services PLC Thursday said it has completed the acquisition of Derek Gladwin Ltd from its sole proprietor for GBP9.5 million net cash, as it looks to increase its presence in the East of England and in its target markets of insurance, fleet and retail.
In a statement, the UK automotive crash repair services provider said it expects the deal to add to earnings in the first full-year following the acquisition. The acquisition will be funded from Nationwide's own cash and banking resources.
Gladwins is a provider of crash repair services in the East of England and the eleventh largest independent bodyshop chain in the UK, according to Nationwide.
It said that Gladwins provides automotive repair services to motor insurers, consumers and fleet operators through the eight bodyshops it operates.
According to Nationwide's statement, Gladwins generated GBP13.4 million of revenue and GBP700,000 of earnings before interest, tax, depreciation and amortisation in the year ended September 30 2013. Net assets were GBP3.2 million at the same stage. Nationwide said Gladwins' unaudited management accounts for the eleven months ended August 31, 2014 show an improved trading performance over the prior year. It also said "certain costs" historically incurred by Gladwins are avoidable going forward.
Gladwins's sole proprietor will support the business over the next twelve months post completion, Nationwide said.
"Having worked within this sector for the last 28 years, I have seen significant changes and a trend towards greater consolidation recently. Nationwide is the market leader and it was an obvious choice when we were looking for a progressive business with which our team would work well. Both organisations have built strong teams and combined will have a significant presence in the area," Gladwins Chairman Harvey Death said in a statement.
Nationwide shares were Thursday untraded, quoted at 75.50 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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