Source - LSE Regulatory
RNS Number : 5943Q
Electrocomponents PLC
01 March 2021
 

Electrocomponents plc

1 March 2021

 

Electrocomponents announces acquisition of John liscombe limited

·      John Liscombe Limited (Liscombe) is a leading supplier of industrial safety and personal protective equipment (PPE)

·      Combined with Needlers, Liscombe significantly expands our PPE expertise across more customer verticals to create a platform to accelerate growth in EMEA

·      Acquisition of Liscombe for £11 million on a cash-free and debt-free basis is accretive to adjusted earnings per share and comfortably covers Group cost of capital within first year

Electrocomponents is pleased to announce the acquisition of Liscombe, a leading specialist supplier of high-risk hand protection and PPE products to industrial blue-chip customers in the UK and the Netherlands. Together with Needlers, our recent PPE acquisition within the food manufacturing vertical, the two businesses will provide a full range offer and expertise across key sectors within safety and PPE. The combination will enable the Group to capture a greater share of wallet with existing customers and establish a meaningful presence in a product category in which we anticipate attractive underlying growth over the long term.

The acquisition is expected to be earnings accretive and comfortably cover the Group cost of capital in our first full year of ownership pre synergies, excluding COVID-19 related revenue and profit. The £11 million consideration will be financed out of our existing debt facilities. Liscombe will continue to be run by the existing management team, reporting into the Needlers MD, Mark Day.

LINDSLEY RUTH, CHIEF EXECUTIVE OFFICER, COMMENTED:

"The acquisition of Liscombe is aligned to our strategy of selectively adding high-quality, value-creating bolt-on acquisitions to the Group. Liscombe's safety and PPE products are already purchased by a significant number of our existing Electrocomponents' customers. We see significant opportunity for Liscombe, and Needlers, to capitalise on leveraging Electrocomponents' global presence, broad range, private-label expertise, operating efficiencies and omni-channel distribution capabilities. We welcome Liscombe to the Electrocomponents Group."

 

Enquiries:

Lucy Sharma, VP Investor Relations                                  Electrocomponents                             020 7239 8427

Martin Robinson / Olivia Peters                                        Tulchan Communications                   020 7353 4200

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
ACQSEEFUMEFSEDE
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Related Charts