LONDON, UK: Clipper Logistics plc has entered into an agreement to acquire the entire issued share capital of CE Repair Services Group B.V (CE Repair) in the Netherlands.
The initial consideration is €12.5m in cash, with up to a further €5.0m deferred consideration dependant on EBIT growth to €3.5m in calendar year 2024.
The assets in the business are acquired on a cash free and debt free basis. The consideration is being funded from Clipper’s existing cash and bank facilities.
Completion of the transaction is conditional on a number of formalities and is expected to take place within the next few weeks.
CE Repair Services is a specialist in consumer electronic repair services based in Dordrecht in the Netherlands providing services across the Benelux countries. The acquisition will complement Clipper’s existing electronic product repair capability in both the UK and mainland Europe.
CE Repair has been a family-owned company operating since 1984 and has built over the years a market leading position, across the Benelux region, in electronic equipment repairs for global blue-chip companies.
Through its Servicecare and RepairTech businesses, Clipper already repaired over 1 million electrical products in its last financial year as part of its value-added returns services to retailers.
The acquisition of CE Repair further extends Clipper’s geographical footprint in mainland Europe, and in particular its presence in the circular economy and its provision of a full end-to-end suite of services for online and omnichannel retailers. A number of cross-selling opportunities between CE Repair and Clipper’s existing customer base have already been identified.
In the financial year to 31 December 2020, CE Repair achieved EBIT of €1.9m on revenue of €23m. The business has seen good growth during the current year and the acquisition will be immediately earnings enhancing for Clipper.
The existing CE Repair management team will remain within the business to continue to deliver double digit organic growth and identify further bolt-on acquisitions in Mainland Europe.
Steve Parkin, Executive Chairman commented: “We are delighted to have increased our footprint in technical services with this acquisition. CE Repair is a profitable and cash generative business and will enable Clipper to widen the range of services that we can offer our customers in mainland Europe. We welcome the employees and management team of CE Repair to the Clipper Group and look forward to continuing to build the breadth and depth of our services and customer base across mainland Europe.”
Clipper Logistics, which is premium listed on the Main Market of the London Stock Exchange, is a leading provider of value-added logistics solutions, e-fulfilment and returns management services, delivering value-added, consultancy-led services to its blue-chip client base. www.clippergroup.co.uk