T&B acquires stake in German reverse logistics company
Tibbett & Britten Group PLC
02 September 2003
2 September 2003
TIBBETT & BRITTEN GROUP PLC
Proposed acquisition of a majority interest in Vfw AG
Tibbett & Britten Group plc (the ‘Company’) announces that it has agreed to
acquire a 27.5 per cent. shareholding in Vfw AG (‘Vfw’), an unlisted German
reverse logistics company from Clemens Reif, the Chief Executive and his Family.
The purchase is conditional on German competition approval and the Company
acquiring at least a further 55 per cent. of the issued share capital through a
tender offer to the remaining shareholders. The offer will be launched on 4
September and be open until 7 October.
Vfw is German market leader for reverse logistics in the retail pharmacy sector.
The business has a strong track record of profitability with revenue and
profits growth over several years. In the year ended 31 December 2002, Vfw
reported, under German GAAP, operating profit of €3.9 million (before
non-recurring items) (£2.7 million) and profit before tax of €3.7 million (£2.6
million) on revenues of €29.5 million (£20.7 million). Net assets at 31
December 2002 were €9.3 million (£6.5 million). At 30 June 2003 Vfw had net
debt of €0.2 million (£0.1 million).
The maximum consideration payable under the transaction is €31.7 million (£22.2
million), to be funded from existing Group resources, assuming full acceptance
of the offer and achievement of earnout targets. The maximum consideration
payable on or before 2 January 2004 is €24.9 million (£17.4 million) and €6.8
million (£4.8 million) will be payable over the period to 31 December 2009 of
which €2.4 million (£1.7 million) is subject to an earnout based on the
operating profit over the period.
Following acquisition, Vfw will be operated by the existing management team as a
separate entity within the Group’s European Operations. The Board expects the
acquisition to be earnings enhancing in the first year.
Commenting on the acquisition, Chairman, John Harvey, CBE said ‘This acquisition
sits comfortably with our strategy of developing added value services for the
retail sector and our development across the European market.’
Enquiries:
John Harvey CBE, Chairman Telephone: 020 7796 4133 (on 2 September 2003)
Mike Arrowsmith, Chief Executive 020 8327 2000 (thereafter)
Mark Whiteling, Finance Director
Andrew Hayes/Jessica Rouleau/James Hill, Hudson Sandler
Telephone: 020 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
