LONDON: Northamber Plc announced the completion of the acquisition of Audio Visual Materials Limited (AVM) for a total consideration of up to £2.5 million from SEA Holdings Limited Group.
Based in Camberley, Surrey, AVM was established in 1968, and is an audio-visual distributor to integrators and other trade parties, primarily in the UK.
For the year ended 31 December 2018, AVM reported revenue of £7.4 million, gross profit of £1.6 million and profit before tax of £0.3 million. AVM currently has 15 employees.
The unadjusted consideration for the Acquisition will be £2.525 million, with an adjusted completion payment of £2,104,780, payable in cash on completion, such adjustment being made after having taken into account both estimated and target working capital and also after having deducted the sum of £0.1 million (such sum to be withheld until determination of the completion accounts). Northamber has funded the consideration from its existing cash resources.
The Acquisition is in line with the Company’s strategy of product and margin improvements. Northamber already has a specialist AV division and the acquisition of AVM will be complementary to the existing offering. The senior management of AVM will remain with the business following the Acquisition.
Geoff Walters, Acting Chairman, commented, “We are delighted to welcome the AVM team on board. We believe there is a strong opportunity for AVM to develop within the Northamber Group. The Acquisition reflects our determination to grow our revenues, broaden our product offering and improve our margins. We remain committed to returning Northamber to profitability and will look to evaluate further opportunities for acquisitive growth.”