(Alliance News) - Electrocomponents PLC on Monday announced the acquisition of industrial safety and personal protective equipment supplier John Liscombe Ltd for GBP11 million.
The FTSE 250-listed distributor of industrial and electronic products said the purchase is on a cash-free and debt-free basis. The acquisition is expected to be earnings accretive and will "comfortably" cover Electrocomponents' cost of capital in its first full-year of ownership of John Liscombe.
Electrocomponents said that, along with its recent acquisition of PPE supplier to the UK food industry Needlers, it will now be able to provide "a full range offer and expertise across key sectors within safety and PPE".
It said the combination with John Liscombe also will enable it to "capture a greater share of wallet with existing customers and establish a meaningful presence in a product category", in which it anticipates underlying growth over the long-term.
John Liscombe will continue to be run by its existing management team but will report to Needlers Managing Director Mark Day.
"The acquisition of Liscombe is aligned to our strategy of selectively adding high-quality, value-creating bolt-on acquisitions to the group. Liscombe's safety and PPE products are already purchased by a significant number of our existing Electrocomponents' customers. We see significant opportunity for Liscombe, and Needlers, to capitalise on leveraging Electrocomponents' global presence, broad range, private-label expertise, operating efficiencies and omni-channel distribution capabilities," said Chief Executive Lindsley Ruth.
Shares in Electrocomponents were up 1.7% at 986.50 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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