Business
Acquisition of photographic business
Acquisition of photographic business.
About this update from Videndum Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 4094C The Vitec Group PLC 07 March 2011 \n \n\n \n \n 7 March 2011\n \nThe Vitec Group plc (\"Vitec\" or \"the Company\")\n \nAcquisition of photographic business\n \nVitec, the international provider of products and services for the broadcast, photographic, and MAG (military, aerospace and government) markets, announces that it has acquired the entire share capital of Henry Holdings Limited (\"HHL\"), for a cash consideration of up to £9.75 million (the \"Acquisition\"). HHL is the owner of Lastolite Limited in the UK (\"Lastolite\"). \n \nBased in Coalville, Leicestershire, Lastolite employs approximately 80 people and is a leading designer, manufacturer and supplier of lighting control accessories and backgrounds for the photo, video and cinema industry. Established in 1986, Lastolite produces highly innovative products for the keen amateur and professional photographer. It is also the owner of the Colorama brand of paper backgrounds. \n \nThe Acquisition will complement Vitec's existing range of Manfrotto lighting supports and LED lights with lighting control accessories, thereby strengthening the Company's position in this part of the accessories market. \n \nLastolite will operate as a standalone business within Vitec's Imaging and Staging Division. Lastolite's existing senior management, including the Managing Director, Sean Henry, will be retained by the business reporting to the Divisional Chief Executive, Francesco Bernardi.\n \nFor the financial year ended 31 December 2010, Lastolite generated audited sales of £8.0 million (of which £1.5 million were to Vitec Group entities) and adjusted profit before tax of £1.4 million. As at 31 December 2010, Lastolite had gross assets of £3.5 million.\n \nUnder the terms of the Acquisition, an initial consideration of £8.75 million was paid on completion and is subject to post-completion adjustments for changes in net assets. Up to a further £1.0 million is payable in 2012 based on operating profit for the year ending 31 December 2011. At completion, Lastolite had net cash balances (net of liabilities assumed by Vitec) of £0.3m. Consideration has been paid in cash, financed out of Vitec's existing revolving credit facilities. The Boa...