4 Jun 2008 07:00
Date: 4 June 2008
On behalf of: Advanced Power Components plc ("APC" or the "Group")
Embargoed until: 0700hrs
Advanced Power Components
Acquisition of Contech Electronics Ltd
Further to the announcement dated 23 May 2008, Advanced Power Components plc (AIM: APC), a specialist distributor and manufacturers' representative of electronic components, today announces that it has acquired the entire issued share capital of Contech Electronics Limited ("Contech"), a leading distributor of data input devices, for a maximum total consideration of approximately £1.0 million in 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, a further payment of up to £75,000 will be made, based on the pre-tax profit performance of Contech 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. This acquisition will be earnings enhancing.
Contech operates within a highly specialised sector of the electronics market, supplying products such as specialist keyboards, barcode scanners, card readers and touch screens to a range of markets including industrial, broadcast and medical. As such, the acquisition diversifies APC's current areas of business. Contech operates 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 Contech's audited results for the eight months ended 31 March 2008, the seven-strong Hertfordshire based company generated revenue of £1.26 million, with net profit before tax of £154,000.
Mark Robinson, Chief Executive of Advanced Power Components, commented:
"The acquisition of Contech will allow APC to maintain its strategy of focussing on highly specialised product areas whilst facilitating a degree of diversification into new technologies and markets. We expect that APC's resources will assist in Contech's development within a number of specialist sectors leading to a further boost to APC's overall growth."
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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 / Matt Thomas
| 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 seven 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.
Contech is a distributor of specialist data input devices for industrial, broadcasting and medical sectors providing technically advanced solutions for specific application areas.