(Alliance News) - Northamber PLC on Monday said it has completed the acquisition of Audio Visual Materials Ltd from Hong Kong-listed SEA Holdings Ltd Group for up to GBP2.5 million.
In December, the computer equipment distributor said it was in advanced discussions over the acquisition of the trade-only audio visual equipment distributor.
Northamber will pay an adjusted amount of GBP2.1 million after taking into account the estimated and target working capital, and also after deducting GBP100,000 which will be withheld until determination of the completion accounts.
For 2018, Audio Visual Materials posted pretax profit of GBP300,000 on a revenue of GBP7.4 million.
"We are delighted to welcome the AVM team on board. We believe there is a strong opportunity for AVM to develop within the Northamber Group. The Acquisition reflects our determination to grow our revenues, broaden our product offering and improve our margins. We remain committed to returning Northamber to profitability and will look to evaluate further opportunities for acquisitive growth," said Acting Northamber Chair Geoff Walters.
For the year to the end of June 2019, Northamber posted a pretax loss of GBP598,000. Revenue fell 13% to GBP50.3 million.
Shares in Surrey-headquartered Northamber were flat at 53.00 pence each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Northamber (NAR)