23 May 2008 09:29
Date: 23 May 2008
On behalf of: Advanced Power Components plc ("APC" or the "Group")
For immediate release
Advanced Power Components
Acquisition Discussions
Advanced Power Components plc (AIM: APC), a specialist distributor and manufacturers' representative of electronic components, today announces that it is in the final stages of negotiations to acquire a distributor of various ranges of data input devices, for a maximum total consideration of approximately £1.0 million cash.
The consideration comprises approximately £375,000 for the estimated net assets, subject to adjustment for the actual value of the net assets on completion, and £550,000 for goodwill. In addition, further payments of up to £75,000 will be made based on the pre-tax profit performance of the target during the three months following completion. Approximately £500,000 of the fixed consideration will be paid on completion, with the remainder to be paid in three equal quarterly payments over a period of nine months. It is anticipated that the transaction will be completed in early June 2008.
The target operates within a highly specialised sector of the electronics market and provides APC with a certain amount of diversification from its traditional component business. The target has built an excellent reputation in industrial, broadcast and medical sectors of the market, operating a similar business model to APC, utilising a successful 'Design In' approach, following projects from concept through to production, and providing customers and suppliers with an effective support capability.
In the target's audited results for the eight months ended 31 March 2008, the seven-strong company generated revenue of £1.25 million, with net profit before tax of £154,000.
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Enquiries:
| Advanced Power Components plc Mark Robinson, Chief Executive Officer
| 01634 290588 www.apc-plc.co.uk |
| Seymour Pierce David Newton
| 020 7107 8000 |
| Redleaf Communications Samantha Robbins / Anna Dunkin / Henry Columbine
| 020 7822 0200 apc@redleafpr.com |
Notes to Editors
About APC
APC plc is a leading specialist distributor of electronic components, comprising five areas of activity:
Hi-Rel distributes a variety of specialist electronic components into applications where component reliability is of paramount importance. Hi-Rel's franchised product lines include power semiconductors, power supplies, memory, wound and high voltage components.
SBM represents manufacturers of relatively specialist electronic components addressing a commercial and industrial customer base. Products represented include power semiconductors, communications magnetic, and connector products, interconnectivity solutions - USB, storage and Firewire audio controllers.
Hero has a specialist team of Product Managers ready to assist with your next design, our key areas include LEDS/LAMPS, drivers, wireless devices and modules, Zigbee, specialist sensors and crystals (plus fast turn around on programming).
Go! provides a kitting and materials management service to companies wanting to outsource non core activities, offering services ranging from material procurement to full production management.
Displays+ provides dedicated technical and commercial support for a wide range of LCD`s, standard, custom, TFT, e-signage, character, graphics, driver boards, IC`s, single board computers and all related connectivity.
Novacom is a distributor and manufacturers' representative for RF and microwave frequency electronic components. The business is managed by a team of technical specialists with many years experience in the RF and Microwave industry.