Business
Acquisition of Danlind a/s
Acquisition of Danlind a/s.
About this update from Mcbride Plc
[{"type":"text","content":"\n \nRNS Number : 6615P McBride PLC 04 September 2017 \n\n4th September 2017 \n \nMcBride plc\n \nAcquisition of Danlind a/s\n \nMcBride plc (\"McBride\" or the \"Group\"), the leading European manufacturer and supplier of Co-manufactured and Private Label products for the Household and Personal Care markets, announces that it has agreed to acquire Danlind a/s (\"Danlind\"), a supplier of auto dish-wash and laundry products, based in Denmark (the \"Acquisition\").\n \nDanlind provides McBride with access to accelerated growth in the key strategic category of auto dish-wash tablets, through its well invested capacity, technology platform and high quality product range. Danlind has a significant range of retail and contract customers along with a well-established position in the Nordic region and in the commercial laundry and dish-wash markets. Danlind will enable McBride to gain entry into growth segments where it is currently under represented. Additionally, Danlind's strong position in Ecolabel products can be developed further through McBride's extensive European reach. \n \nDanlind operates from three manufacturing sites in Denmark, and has approximately 250 employees. For the year ended 31 December 2016, Danlind reported revenues of £58.4 million, EBITDA of £1.6m, a loss before tax of £1.3 million, and had gross assets of £48.0 million as at 31 December 20161. For its financial year ending 31 December 2017, on a standalone basis, Danlind is currently expected to generate c. £2.5million of EBITDA1. \n \nMcBride expects to realise significant commercial, technical and operational improvement synergies from the acquisition. The acquisition is expected to be immediately earnings enhancing for the Group. Post-tax return on invested capital is expected to meet cost of capital in the third full year of ownership.\n \nConsideration of £10.8 million1 will be payable to the shareholder of Danlind, Lind Holdings ApS, and c. £28 million1 of net debt in Danlind will be assumed by McBride at completion. The acquisition will be funded from McBride's existing banking facilities.\n \nThe Acquisition, which is subject to customary regulatory and closing conditions, is expected to complete in early October 2017.\n \nOn completion, Danlind, the management team and its employees will ...