LONDON: APC Technology Group, the provider of design-in, specification and distribution services for specialist electronic components and systems, lighting technologies and connectivity products, has completed the acquisition of Euro-Tech (Export) Limited, a distributor and international reseller of electronic components. [the_ad id=”31605″]The consideration payable will be £1.05 million of which £0.165 million represents cash at completion in Euro-Tech and £0.14 million is derived from excess working capital. 50% of the purchase consideration is payable on completion, 25% in monthly installments over twelve months and 25% twelve months after completion.
Euro-Tech sources and supplies a wide range of active, passive and electromechanical components, industrial products and consumables from major global manufacturers and quality assured sources across Europe to blue chip OEM and CEM customers around the world.
Euro-Tech’s products and services are complementary to APC’s Locator business and will significantly enhance APC’s capability in the sourcing of hard to find or obsolete and end of life components, products and systems. The previous owners and founders of Euro-Tech, Chris Smallwood and Phil Hutchins, will continue to work within the business, reporting to APC’s Chief Executive, Richard Hodgson. Chris will assist with integrating the business for a period of time before retiring, while Phil will continue in his role as Sales & Marketing Director, driving the business’s sales growth across the enlarged Group.
For the 12-month period ended 30 April 2019, Euro-Tech’s unaudited results will record revenues of £2.2 million, gross profit of £0.75 million, an adjusted EBITDA of £0.2 million, a profit after tax of £0.1 million and net assets of c£0.6 million. It is expected that its profitability will increase following integration into the Group’s business with the realisation of potential efficiency and revenue synergies.
The Euro-Tech balance sheet at completion includes £0.35 million of trade debtors, which will be rolled into the APC invoice finance facility with ABN and hence the transaction will be funded through the Group’s existing financing facilities.