Acquisition of photographic business
7 March 2011
The Vitec Group plc ("Vitec" or "the Company")
Acquisition of photographic business
Vitec, the international provider of products and services for the broadcast, photographic, and MAG (military, aerospace and government) markets, announces that it has acquired the entire share capital of Henry Holdings Limited ("HHL"), for a cash consideration of up to £9.75 million (the "Acquisition"). HHL is the owner of Lastolite Limited in the UK ("Lastolite").
Based in Coalville, Leicestershire, Lastolite employs approximately 80 people and is a leading designer, manufacturer and supplier of lighting control accessories and backgrounds for the photo, video and cinema industry. Established in 1986, Lastolite produces highly innovative products for the keen amateur and professional photographer. It is also the owner of the Colorama brand of paper backgrounds.
The Acquisition will complement Vitec's existing range of Manfrotto lighting supports and LED lights with lighting control accessories, thereby strengthening the Company's position in this part of the accessories market.
Lastolite will operate as a standalone business within Vitec's Imaging and Staging Division. Lastolite's existing senior management, including the Managing Director, Sean Henry, will be retained by the business reporting to the Divisional Chief Executive, Francesco Bernardi.
For the financial year ended 31 December 2010, Lastolite generated audited sales of £8.0 million (of which £1.5 million were to Vitec Group entities) and adjusted profit before tax of £1.4 million. As at 31 December 2010, Lastolite had gross assets of £3.5 million.
Under the terms of the Acquisition, an initial consideration of £8.75 million was paid on completion and is subject to post-completion adjustments for changes in net assets. Up to a further £1.0 million is payable in 2012 based on operating profit for the year ending 31 December 2011. At completion, Lastolite had net cash balances (net of liabilities assumed by Vitec) of £0.3m. Consideration has been paid in cash, financed out of Vitec's existing revolving credit facilities. The Board expects the Acquisition to be earnings enhancing (on an adjusted basis) in the year ending 31 December 2011 (see note 1).
Stephen Bird, Vitec's Group Chief Executive, commented on the acquisition:
"We are delighted to announce the acquisition of Lastolite, which is in line with our strategy of broadening our lighting offering within the photographic market. The Lastolite business and its management are well known to us and we look forward to the Lastolite and Manfrotto teams working together, sharing distribution and sales opportunities."
ENDS
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive Telephone: 020 8939 4650
Nick Humby, Interim Chief Financial Officer
Financial Dynamics
Nick Hasell / Sophie Moate Telephone: 020 7269 7291
Note:
1. This statement should not be taken to mean that earnings per share of The Vitec Group plc will necessarily exceed or be lower than historic earnings per share of The Vitec Group plc and no forecast is intended or implied.
Vitec is an international Group principally serving customers in the broadcast, photographic and military, aerospace and government (MAG) markets. Listed on the London Stock Exchange with 2010 revenue of £310 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely. Vitec is organised in three divisions: Imaging & Staging, Videocom and Services.
Imaging & Staging designs, manufactures and distributes equipment and accessories for photography, video and events.
Videocom designs and distributes systems and products used in broadcasting and live entertainment, film and video production and MAG.
Services provides equipment rental, workflow design and technical support for camera, video, audio, fibre optic and wireless technology used by TV production teams and film crews.
More information can be found at: www.vitecgroup.com.
This information is provided by RNS