Debt purchaser Arrow Global's (ARW) £158 million takeover of Capquest (24 Sep) looks the stand out in a series of substantial deals in the small cap space.
Arrow's planned acquisition of the UK debt management business adds 2.8 million customers, £4.1 billion in assets and is expected to enhance earnings by 3% in 2015 and 13% the year after, according to analysts at broker Jefferies. Another bonus is that Capquest chief executive officer Helen Ashton, previously managing director at Barclaycard, joins the business.
Elsewhere paper and packaging group Powerflute (POWR:AIM) has proposed (30 Sep) a reverse takeover of Finnish coreboard producer Corenso for €81 million in a deal expected to be ‘immediately earnings enhancing’. Powerflute's model is to buy unloved business and improve their operational efficiency. Corenso expands Powerflute's product base and gives it a strategic position in the US and China.
Medical device and drug maker Consort Medical (CSRT) steps up its plans to win more business from outsourcing drug companies through buying contract developer Aesica (30 Sep). The £230 million price tag is 80% of Consort's £289.7 million cap and is part-funded by a 33.9% discounted £95.3 million rights issue.
