great acquisition12 Nov 2012 22:28
these guys are a class act: know the business they are acquiring; great fit; aussie 4m for aussie 1.5m pre tax profit...what not to like?
"Dewhurst plc, an independent supplier of quality components to the lift, keypad and transport industries, is pleased to announce it has signed a conditional agreement to acquire 70% of the business and assets of the partnership trading as Dual Engraving from D.E. Corporate Pty Ltd and Datree Pty Ltd (the "Business" or "Dual"). The agreement is subject to satisfactory due diligence on the Business.
...
The key terms of the deal [include]
· The Company will acquire the 50% stake of David Waideman (held by Datree Pty Ltd) for a maximum cash consideration of A$2,050,000 on completion. David Waideman will retire from the business and has agreed to certain restrictive covenants for a period of 3 years.
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Commenting on the acquisition, Richard Dewhurst, Chairman of the Company, said:
In the year ended 30 June 2012 (the most recently filed financial information), Dual Engraving made a profit before tax of A$1.58m on turnover of approximately A$5.65m.
....
"Assuming we proceed to completion, the deal will allow us to provide better geographical support to customers in our important Australian market. Dual has been a customer of our Lift Material subsidiary for several years and we have been impressed with the way the business has developed over that period. There are long term plans for further development in Perth, which should support continued growth of the business, although, of course, there are cycles in all economies."
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