27 March 2015
H C SLINGSBY PLC
("Slingsby" or the "Company")
Acquisition of ESE Direct Limited
Slingsby today announces the acquisition of ESE Direct Limited ("ESE") for cash consideration of £3.9 million, financed through a combination of cash and asset backed debt. It is a condition of the acquisition that ESE has £600,000 in cash at completion, which Slingsby consider is surplus to working capital requirements. Accordingly, ESE is being acquired for a consideration of £3.3 million on a cash free/debt free basis.
ESE is an award winning, profitable, independent company operating in the same sector as Slingsby and was established in 1975 in Norwich. Originally operating under the name Eastern Storage Equipment Limited, the business has grown from supplying shelving, mezzanine flooring and partitioning to offering an array of industrial and commercial equipment encompassing office and commercial, workshop, site safety, security, and environmental supplies, largely via the internet.
The acquisition provides Slingsby with an opportunity to diversify its brand portfolio enabling the more effective targeting of different sub-sets of customers with alternative service propositions and varying pricing strategies. The acquisition fits directly into the company's core operations, immediately contributing to group profitability and adding economies of scale.
The unaudited accounts for the year ended 31 December 2014 show that ESE produced profit before tax of £351,577 on a gross profit of £1,941,265, EBITDA before one-off pension costs of the directors of £529,508 and a turnover of £6,548,838. At 31 December 2014, ESE had unaudited net assets of £621,986, including £725,206 in cash.
No directors of ESE will be joining the board of Slingsby.
Commenting on the acquisition, Slingsby Managing Director, Dominic Slingsby said:
"We are delighted with the acquisition. We have been looking at suitable targets for some considerable time and ESE Direct is an excellent fit. The incremental profitability and synergistic benefits will place the wider group in a far stronger position for both companies to better exploit opportunities in their respective market sectors."
For further information, please contact:
H C Slingsby plc |
Tel: 01274 535 030 |
Dominic Slingsby, Managing Director |
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Sanlam Securities UK Limited |
Tel: 020 7628 2200 |
David Worlidge / James Thomas |
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