Neopost announces the acquisition of PFE, a worldwide supplier of folders/inserters
Neopost announced the acquisition of PFE International Ltd, a worldwide supplier of folders/inserters.
PFE is a privately-owned UK company which was founded in 1963. PFE generated sales of GBP 29.3 million in 2006, of which almost 80 pct came from outside the UK. PFE has a distributor network covering 55 countries as well as 10 subsidiaries located in Australia, Austria, Belgium, France, Germany, Ireland, Portugal, Singapore, the United Kingdom and the United States. The company employs 480 staff.
A strong complementarily exists between Neopost and PFE’s lines of folding and inserting products. Neopost is mainly focused in the lower volume market while PFE is strongly focused in the higher volume market. The transaction will result in a more comprehensive product line and a reinforced distribution network as well as increased synergies with Neopost’s mailing systems. The companies signed an agreement covering the acquisition of most of PFE’s activities.
The activities to be acquired generated sales of GBP 27.5 million in 2006 with an EBIT margin of about 5 pct. The transaction will be based on an enterprise value of GBP 27.2 million, around one times sales, and will be financed by the existing credit lines. The transaction remains subject to approval by the relevant regulatory authorities.
