PARIS: Photo-Me International, the instant-service equipment group, has acquired 96% of the issued share capital of SEMPA Sarl, a company incorporated in France which specialises in commercialised self-service fresh fruit juice equipment. The gross consideration payable for the acquisition is €20.64 million, funded by a new debt facility of €20.0 million.[the_ad id=”31605″]Sempa is the leader in France for the commercialisation of self-service fresh fruit juice equipment. The business operates via a lease model, whereby Sempa sells equipment to customers via lease finance agreements. Sempa receives full payment upon sale of the equipment and the lease finance contracts are then subject to renewal every 12-months on average. Sempa’s customers include retail, office and work spaces, and small businesses.
Following the acquisition, the Group will leverage Photo-Me’s significant innovation expertise and Sempa’s industry experience to develop innovative self-service fresh fruit juice equipment.
This acquisition is in line with Photo-Me’s strategy to diversify its vending operations and will develop a new segment alongside its Identification, Laundry and Kiosk businesses.
Sempa’s profit before tax for the year ended 31 December 2018 was €3.7 million, its net cash position as at 31 December 2018 was €7.7 million and the value of its gross assets was €11.6 million, all as derived from audited accounts of Sempa for the year ended 31 December 2018. Sempa’s net cash position upon acquisition is more than €9.0 million, and hence the effective consideration paid is approximately €11.6 million. The majority of Sempa’s revenue is based on recurring annual lease finance contracts.
This acquisition is expected to be earnings enhancing in the financial year ending 30 April 2020 and thereafter, and in the financial year ending 30 April 2020 is expected to contribute revenue of more than €10.0 million and approximately €3.7 million profit before tax.
Commenting on the acquisition, Serge Crasnianski, Chief Executive Officer & Deputy Chairman of Photo-Me, said: “We are excited to announce this acquisition which will mark Photo-Me’s entry into the $154 billion fresh fruit and vegetable juice market. The growing importance people place on their health and wellbeing makes it an exciting time to enter this market, with the health benefits of juice driving its popularity and potential.
“We have the opportunity to become a leader in this industry based on our existing commercial relationships and expertise in instant vending equipment innovation. Sempa has been highly successful in the French market and we look forward to replicating this initially across our network in Europe. The acquisition represents part of our ongoing strategy to develop new and complementary products to drive the long-term growth of Photo-Me.”