Stadium Group Makes Fifth Technology Acquisition In 5 Years
LONDON (Alliance News) – Technology supplier Stadium Group PLC on Friday said it has bought PowerPax UK Ltd for GBP2.8 million in cash.
PowerPax serves the industrial power supply market, and its acquisition marks the fifth technology business to join Stadium Group in the last five years. The assets being acquired have a value of around GBP800,000.
Formed in 2000 and based in Theale, Berkshire, PowerPax manufactures and distributes a wide range of power supplies, battery chargers and LED products, including AC-DC switch mode power supply units and DC-DC converters.
Stadium Group said the addition of PowerPax augments its design-led technology strategy and offers cross-selling opportunities along with a wider proven supplier base and an experienced team.
The acquisition is expected to add to earnings in its first full year of ownership.
For the year ended August 31, 2016, PowerPax recorded sales of GBP3.3 million and a pretax profit of GBP400,000.
Stadium Group will pay GBP2.5 million in cash on completion and GBP300,000 as a deferred payment within 12 months, which will be funded from the company’s existing cash resources and through an increased debt facility with HSBC Holdings PLC.
The facility has been increased to GBP15.0 million from GBP5.0 million on a three-year term, with the option to extend for a further two years.
“PowerPax is an excellent synergistic fit for Stadium’s Power division; fully aligned with our growth plans for design-led technology products and ideally placed to seamlessly integrate its highly complementary product line into Stadium Stontronics. We expect to see the full financial benefits of this acquisition from 2018 onwards,” Chief Executive Charlie Peppiatt said.
Shares in Stadium Group were trading up 4.8% to 132.00 pence on Friday morning.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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