2009-12-21
HL Display acquires British PPE Ltd.
HL Display AB (publ) has acquired PPE Limited, a UK based manufacturer of
bespoke merchandising solutions. The acquisition strengthens HL Display's
offering to the important brand manufacturers segment and strengthens its
position on the UK market.
The purchase price (for the equity) amounts to GBP 22.1 million (approx. SEK 260
m) with a further GBP 5.0 million (approx. SEK 60 m) of deferred consideration.
The acquisition will be consolidated in HL Display Group accounts from December
31, 2009.
PPE Ltd. is one of Europe's leading designers and manufacturers of bespoke Point
of Sale (POS) displays and merchandising solutions as well as standard products,
servicing mainly brand manufacturers. The company is especially strong within
“secondary placement” - exposure off the store shelf - including floor stands
built using a combination of different materials such as metal, plastic and
wood, combined with printed effects. PPE Ltd. with approximately 280 employees
is located in Harlow (Essex) and its main market is the UK. The company is also
represented outside the UK through a subsidiary in the Netherlands. For the
fiscal year ending 31 January 2009 the business recorded sales of GBP 27.3
million and operating profit1 Earnings before interest, tax and amortization
according to UK GAAP principles. (EBITA) of GBP 3.7 million. Following the
acquisition, HL Display's business in the UK grows from less than 50 to
approximately 330 employees. HL Displays current sales in the UK amounts to
approximately GBP 8 million.
HL Display is financing the acquisition with a combination of cash and debt,
where HL Display preserves balance sheet capacity to pursue further acquisition
opportunities going forward. The acquisition is expected to contribute
positively to HL Display earnings per share for the fiscal year ending 31
December 2010 and onwards.
“PPE Ltd. provides an ideal fit with the HL Display Group. The company has
strong skills and extensive experience in designing and manufacturing bespoke
merchandising solutions, which we will benefit from in all our markets.
Furthermore, they add multi-material production capacity to the Group. In
combination with our existing product range, HL Display can now present a strong
and broad product offering to the branded consumer goods segment, one of our
target areas for future growth. PPE also shows good profitability and meets all
other criteria that form part of our acquisition evaluation process”, says
Gérard Dubuy, CEO of
HL Display.
PPE Ltd. has operated since 1971 and was previously owned by the founding
family. The previous owners,
Mr Neil Parker and Mr Nigel Parker, will continue
to manage the company, which will secure continuity in operations and customer
relations.
“Together with HL Display, we can expand into new customer segments
while improving our service offering to existing customers. We now have an
opportunity to create a leading business in our niche on the British market. In
addition, this opens up completely new market opportunities outside the UK”,
says Neil Parker, joint Managing Director of PPE Ltd.
HL Display was advised by Navigo Partners AB in this transaction. Skandinaviska
Enskilda Banken AB (publ) has provided HL Display with a bank facility in
support of the acquisition as well as HL Display's general funding requirements.
For further information please contact CEO Gérard Dubuy, CFO Per Sundquist or IR
Yvonne Cedergren,
phone +46 8 683 73 00.
HL Display is a leading international supplier of products and solutions for
merchandising and in-store communication. With more than 50 years experience,
the company specialises in displaying products in stores in a way that increases
sales and makes the store-work more efficient at the same time providing end
consumers with all the information required to make a purchasing decision. HL
Display has its own sales companies in 33 countries in Europe Asia and Middle
East. A further 13 markets are serviced via distributors. Net sales amounted to
SEK 1 536 million in 2008. The HL Display share was listed in 1993 and is
currently quoted on the Nasdaq OMX Nordic Small Cap list.
