Business
Acquisition of Vendek Limited
Acquisition of Vendek Limited.
About this update from Supreme Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5613B\n Supreme PLC\n 11 June 2021\n \n \n \n 11 June 2021\n \n Supreme plc\n \n (\"Supreme,\" the \"Company\" or the \"Group\")\n \n Acquisition of Vendek Limited for up to €1.82 million\n \n - Acquisition of one of Ireland's leadingdistributors of batteries and lighting products\n - Creates a hub from which to expand Supreme's European footprint\n \n Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer products, announces the acquisition of Vendek Limited (\"Vendek\"), a leading Dublin-based distributor of batteries and lighting products, for an initial consideration of €1.07 million plus deferred consideration and a performance related earn-out of up to €0.75 million in aggregate (the \"Acquisition\").\n \n Vendek operates exclusively within Ireland, distributing battery and lighting products under the Osram, Panasonic and Duracell brands and servicing some of the country's leading retailers across DIY, hardware, convenience, and petrol stations. The business was founded in 1996 and is profitable, cash generative and has reported consistent growth in recent years. For the years ended 31 December 2019 and 31 December 2020, Vendek generated revenues of c.€4.7 million and €5.6 million and adjusted EBITDA of €0.5 million and €0.7 million, respectively. As at 31 December 2020, Vendek had net assets of €2.5 million. A certain amount of the growth achieved through 2020 can be attributed to increased demand for Vendek's products during COVID-related lockdowns. The Acquisition is expected to be immediately earnings enhancing for the Group.\n \n All financials for Vendek are unaudited.\n \n Strategic rationale\n \n \n · Acquisition expected to be immediately earnings enhancing prior to the realisation of any revenue or cost synergies;\n \n \n · Significant product and customer overlap with Supreme across the Group's batteries and lighting categories with potential to enhance margins across the combined business;\n \n \n · Delivers a sizeable foothold into the Irish market, including key distribution infrastructure and long-standing customer relationships with some of Ireland's leading retailers, such as Supervalu, Dunne Stores and Woodies;\n \n \n · Provides a strong platform from which to...