St Ives Buys POS Specialist To Extend Penetration

St Ives has acquired the whole of the issued share capital of SP Group Holdings Limited, the independent supplier of point-of-sale material to major international brands and retail chains.

St Ives has acquired the whole of the issued share capital of SP Group Holdings Limited, the independent supplier of point-of-sale material to major international brands and retail chains.

Its services include complete project management and fulfilment operations in addition to its own digital, silk-screen and Iithographic printing facilities.

Its operations are based at sites in Redditch and Birmingham (UK).

St Ives believes its acquisition of SP Group will add significantly to St Ives' own capabilities in supplying point-of-sale material, whose requirements extend beyond the supply of print.

SP Group's activities are complementary to those of the existing St Ives companies.

In its financial year ended 31 March, 2004 SP Group generated profit before interest, amortisation of goodwill and exceptional items of £3.9 million on a turnover of £35.4 million.

At the date of acquisition net assets are expected to be approximately £6.5 million and SP Group is being acquired on a debt free basis said St Ives.

The consideration for the acquisition is £33 million payable as to about £29 million in cash and as to the balance through the issue of floating rate notes.

Additional consideration of up to £3.92 million will (if applicable) become payable in cash or loan notes in the early summer of 2005, if the profit before interest and amortisation of goodwill of SP Group for the year ending 31 March 2005 is £4.9 million.

Reduced additional consideration will be payable if the profit before interest and amortisation of goodwill for the year ending 31 March 2005 is more than £4.3 million, but less than £4.9 million.

The cash consideration will be financed out of St Ives' cash resources and available bank facilities.

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