LONDON (Alliance News) - Tandem Group PLC Monday said it has acquired online mobility scooters retailer Pro Rider Mobility Ltd, for an initial consideration of GBP2.5 million.
The Bromwich-based designer, developer and distributor of sports and leisure products, said it will initially pay GBP2.5 million in cash for Pro Rider Mobility, but may pay an additional GBP0.5 million to GBP1 million, depending on the profitability of the business.
The company said the acquisition will be funded using its existing cash resources, and said it expects Pro Rider to be earnings enhancing in its first full year of ownership.
Pro Rider, which sells mobility scooters, associated mobility products, electric bicycles and electric golf trolleys, made a profit of GBP0.3 million in the financial year ended January 31, 2013.
"The acquisition will broaden the group's distribution channels and its customer base by utilising the existing Pro Rider online trading platform and through continued development and growth of the business. The business will continue on a stand-alone basis but will have access to the group's buying and sourcing resources," the company said.
Tandem shares were trading 2.5% higher at 123.00 pence Monday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Tandem Group (TND)