LONDON Specialist electromechanical manufacturing and distribution group, Deltron Electronics, has brought up its Bournemouth-based competitor, Quiller Holdings, for approximately £3.1 million.
The deal is for £2.5 million in cash on completion and around £276,000 in new ordinary shares in Deltron at an issue price of 81p per share. The remaining £250,000 of the price is to be paid in cash on agreement of completion accounts. Net assets of approximately £1.3 million are projected as at completion, including approximately £0.9 million of cash.
In the year ended 31 December 2003, Quiller, which was founded in 1991, recorded group turnover of approximately £4.2 million and profit before interest and tax of approximately £246,000 with 32% gross margins.
Since its formation, Quiller has extended its product range to represent a comprehensive selection of international component manufacturers, a number of which it has exclusively in the UK. The purchase will bring a number of UK franchises to Deltron including additional products for the aviation and security markets.
Christopher Sawyer, Chief Executive Officer of Deltron, said, “I am delighted with this acquisition which I believe will give Deltron a stronger market position in the UK and fortify the company's position as a leading European provider to the electronic components market. In addition to its strong historic financial performance Quiller provides Deltron with an increased UK customer base and range of products, new revenue opportunities and combines mutually beneficial skill sets. We look forward to the successful integration of Quiller into the enlarged Deltron Group.”
The Deltron Group has operating companies in the UK, Ireland, Netherlands, Austria, Germany, France, Italy, Sweden, Norway and Denmark.