(Alliance News) - Leeds-based Clipper Logistics PLC on Monday has agreed to acquire CE Repair Services Group BV for up to EUR17.5 million.
Clipper will acquire the consumer electronic repair services company for an initial EUR12.5 million in cash, following by a deferred EUR5.0 million depending on if the CE Repair achieves earnings before interest and tax of GBP3.5 million in 2024.
The consideration is being funded from Clipper's existing cash and bank facilities. In 2020, CE Repair achieved Ebit of EUR1.9 million on revenue of EUR23.0 million.
The acquisition of the Netherlands-based firm is expected to complement Clipper's existing electronic product repair capability in both the UK and mainland Europe, extend Clipper's geographical footprint and be immediately earnings enhancing.
"We are delighted to have increased our footprint in technical services with this acquisition. CE Repair is a profitable and cash generative business and will enable Clipper to widen the range of services that we can offer our customers in mainland Europe." said Executive Chair Steve Parkin.
Shares in Clipper Logistics were up 2.4% at 645.00 pence on Monday in London.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
