Business
Acquisition of Sempa
Acquisition of Sempa.
About this update from Me Group International Plc
[{"type":"text","content":"\n \nRNS Number : 0177X Photo-Me International PLC 25 April 2019 \n\n \n \n25 April 2019\n \nPhoto-Me International plc\n(\"Photo-Me\" or \"the Group\")\n \nAcquisition of SEMPA \n \nPhoto-Me enters the $154 billion fresh fruit and vegetable juice market (*)\n \nPhoto-Me (PHTM.L), the instant-service equipment group, is pleased to announce that it has acquired 96% of the issued share capital of SEMPA Sarl (\"Sempa\"), a company incorporated in France which specialises in commercialised self-service fresh fruit juice equipment. The gross consideration payable for the acquisition is €20.64 million, funded by a new debt facility of €20.0 million.\nSempa is the leader in France for the commercialisation of self-service fresh fruit juice equipment. The business operates via a lease model, whereby Sempa sells equipment to customers via lease finance agreements. Sempa receives full payment upon sale of the equipment and the lease finance contracts are then subject to renewal every 12-months on average. Sempa's customers include retail, office and work spaces, and small businesses. \nFollowing the acquisition, the Group will leverage Photo-Me's significant innovation expertise and Sempa's industry experience to develop innovative self-service fresh fruit juice equipment. \nThis acquisition is in line with Photo-Me's strategy to diversify its vending operations and will develop a new segment alongside its Identification, Laundry and Kiosk businesses.\nPhoto-Me intends to become the global leader in self-service fresh fruit juice machines and, with this acquisition, will pursue a strategy to replicate the success Sempa has already seen in France, initially rolling out the equipment across its European network. Photo-Me will further benefit from the cross-sale of its instant-service offering by introducing photobooths, laundry units and kiosks to the retail sites where Sempa has already established a footprint.\nThe new estate will be supported by the Group's existing network of regional field engineers as well as its sales team at a low incremental cost to the Group. \nSempa's profit before tax for the year ended 31 December 2018 was €3.7 million, its net cash position as at 31 December 2018 was €7.7 million and the value of its gross assets was €11.6 million, all as derived from audited accounts of Sem...