LONDON (Alliance News) - Acal PLC said Friday that it has acquired UK-based customer cabling and connector products company Contour Holdings Ltd and its affiliate Contour Electronics Asia Ltd, together Contour, for up to GBP24.0 million.
Acal will pay an initial GBP14 in cash, funded from its debt facilities, and will issue shares to the value of GBP3.0 million. It will pay a deferred consideration of up to GBP1.0 million in April 2019, subject to some conditions, and an additional contingent consideration of up to GBP6.0 million after July 2019 based on growth targets.
Acal expects the acquisition to enhance its underlying earnings immediately.
The business will operate under Acal's Design and Manufacturing division. Contour reported a pretax profit of GBP1.1 million in the year to end-June 2015, on revenue of GBP10.7 million.
"The acquisition of Contour continues our strategy of building a differentiated group with higher operating margins by buying high quality, growing design and manufacturing businesses," said Acal Chief Executive Nick Jefferies in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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