25th Apr 2019 09:47
LONDON (Alliance News) - Photo-Me International PLC said Thursday it has entered the fresh fruit and vegetable juice equipment market with the EUR20.6 million acquisition of French firm Sempa Sarl.
The UK listed vending equipment maker has acquired 96% of Sempa, which specialises in self-service fresh fruit juice equipment. The business operates via a lease model, whereby Sempa sells equipment to customers via lease finance agreements.
Photo-Me said the acquisition is in line with its diversification strategy and, following completion of the deal, the company will utilise its expertise and Sempa's industry experience to develop self-service fresh fruit juice equipment, it said.
The gross acquisition consideration has been funded by a new debt facility of EUR20 million.
The Sempa acquisition is expected to be earnings enhancing for Photo-Me in the year ending April 30 2020, and thereafter. In the financial year ending 2020, Sempa is expected to contribute revenue of more than EUR10.0 million and around EUR3.7 million pretax profit.
In 2018 Sempa recorded pretax profit of EUR3.7 million.
"We are excited to announce this acquisition which will mark Photo-Me's entry into the USD154 billion fresh fruit and vegetable juice market," said Photo-Me Chief Executive & Deputy Chair Serge Crasnianski.
"We have the opportunity to become a leader in this industry based on our existing commercial relationships and expertise in instant vending equipment innovation. Sempa has been highly successful in the French market and we look forward to replicating this initially across our network in Europe. The acquisition represents part of our ongoing strategy to develop new and complementary products to drive the long-term growth of Photo-Me," Crasnianski added.
Shares in Photo-Me were up 4.1% at 89.04 pence each on Thursday morning.
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