20th Aug 2015 07:01
LONDON (Alliance News) - Motor support services company Redde PLC on Thursday said it has struck a GBP43.2 million cash and shares deal to acquire fleet accident management company FMG Group Holdings Ltd and its subsidiaries.
Redde said the deal will broaden its accident and fleet management operations and will give it access to new sectors. It will also boost its opportunities in winning work with large fleet managers and owners requiring accident management and legal services.
The consideration will be paid as GBP38.2 million in cash, plus a further GBP5.0 million in Redde shares. The shares it intends to issue as part of the deal will be valued based on their volume-weighted average price for the 20 days leading up to the completion of the cash portion of the consideration, Redde said. It also will contribute GBP2.5 million towards working capital.
"The addition of FMG to the Redde group supports our strategic objective of growing earnings on a sustainable basis and broadening the scope of services we offer which are related to our core businesses. FMG is a quality business and has a strong reputation in its fields of business for serving its customers well," said Redde Chief Executive Martin Ward.
By Sam Unsted; [email protected]; @SamUAtAlliance
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