20 Sep 2016 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
The Vitec Group plc
20 September, 2016
ACQUISITION OF WOODEN CAMERA
The Vitec Group plc ("Vitec"), the international provider of products and services to Broadcast and Photographic markets, announces that it has acquired Wooden Camera Inc and Wooden Camera Retail Inc ("Wooden Camera") for cash consideration of up to $35 million (£26.7 million). Wooden Camera is a leading one-stop provider of high-quality, essential camera accessories used by broadcasters and independent content creators.
Based in Dallas, Texas, Wooden Camera designs and sells a full range of Wooden Camera branded professional accessories to videographers who require high-performing solutions. These high-technology products supplement basic camera equipment by linking camera peripherals and can be used on the majority of leading cameras. Wooden Camera designs its products in the USA and sells them through a number of channels, including its own on-line store, a dedicated retail outlet and a reseller network. The products are used by the growing market of independent content creators providing images to an increasing number of new video platforms.
The acquisition is in line with Vitec's strategy of offering innovative and highly technical solutions to the Group's established global customer base. It will strengthen and complement Vitec's existing activities, including Teradek, Paralinx, SmallHD and Offhollywood which also design and provide high quality products mainly for independent content creators.
Wooden Camera is being acquired from its current management, Ryan and Elizabeth Schorman, who will remain with the business, and it will form part of the Broadcast Division. There are significant growth opportunities to sell Wooden Camera's products through Vitec's global sales and distributor network and the business will benefit from Vitec's manufacturing and product sourcing capabilities.
For the financial year-ended 31 December 2015, Wooden Camera generated an unaudited adjusted EBITDA and profit before tax of $2.5 million (£1.9 million) and $2.4 million (£1.8 million) respectively. The business has grown during 2016 year-to-date through launching new product ranges and we anticipate further sales and profit growth. As at 31 December 2015, Wooden Camera had gross assets of $2.4 million (£1.8 million).
Under the terms of the acquisition, the initial estimated cash consideration is $20.0 million (£15.3 million) on a debt/cash free basis. This is subject to certain post-completion adjustments for changes in net assets.
Up to a further $15.0 million (£11.5 million) cash consideration will be payable dependent on the future trading of Wooden Camera against demanding EBITDA targets in the periods up to 31 December 2018 including EBITDA of $7.3 million in 2018.
The cash consideration will be comfortably financed out of Vitec's existing banking facilities. The Board expects the acquisition to be immediately earnings enhancing1.
Stephen Bird, Vitec's Group Chief Executive, commented on the acquisition:
"I am delighted to welcome the Wooden Camera team to Vitec. Wooden Camera's products are the glue that binds all the building blocks together on a professional camera system.
This leading business complements Vitec's strategy of providing premium branded broadcast products and services to our customers to capture and share exceptional images.
The business has great prospects and we anticipate that it will generate a good return on our investment."
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
Telephone: 020 8332 4600
MHP Communications
Tim Rowntree
Jamie Ricketts
Ollie Hoare
Telephone: 020 3128 8100
Notes:
1. This statement should not be taken to mean that earnings per share of The Vitec Group plc will necessarily exceed or be lower than historic earnings per share of The Vitec Group plc and no forecast is intended or implied. This refers to earnings before charges associated with acquisition of businesses.
2. The US$ values quoted in this announcement are also shown in £s by converting the US$ values at an exchange rate of £1 = $1.31.
Vitec is a global provider of premium branded products and services to the Broadcast and Photographic markets. Vitec is listed on the London Stock Exchange with 2015 revenue of £317.8 million.
The Group is organised in two Divisions:
The Broadcast Division designs, manufactures and distributes premium branded products for broadcasting, film and video production for broadcasters and independent content creators. It also provides premium services including equipment rental and technical solutions to TV production teams, film crews and corporate enterprises.
The Photographic Division designs, manufactures and distributes premium branded equipment for photographic and video cameras and provides dedicated solutions to professional and non-professional image takers.
More information can be found at: www.vitecgroup.com.