ADG Global Supply (ASX: ADQ) has boosted its global capabilities out of the Europe region with the acquisition of Winchester Procurement, a privately held, UK based procurement and supply business.
Importantly, the acquisition will extend ADG’s customer base, significantly lift its supplier reach and provide increased buying power for the company.
ADG will acquire 100% of the shares in Winchester Procurement, which was established in 1990, for £1.125 million (A$1.67 million) based on net tangible assets of £1.16 million as at 31 December 2011.
Winchester Procurement reported a turnover and adjusted normalised earnings before interest and taxes for the year to 31 December 2011 of around £6 million and £0.4 million respectively.
Winchester services clients in a number of regions with approximately 60% of sales into Africa.
The acquisition comes four months after ADG announced the establishment of its London-based office and distribution facility as part of an expansion into Europe to better service a growing client base in Africa.
ADG plans to keep the Winchester brand and will extend ADG's project logistics, industrial products and other services to Winchester customers.
As the company integrates various back end functions into its operations ADG expects cost savings and margin improvements for both businesses.
ADG Global Supply expands global footprint with acquisition of UK based procurement business
Last updated: 15:54 16 Jan 2012 AEDT, First published: 14:54 16 Jan 2012 AEDT