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Clipper Logistics Buys UK Consumer Electronic Repair Services Firm RepairTech
Monday 19 June 2017

19 June 2017 - UK-based logistics solutions and e-fulfilment services provider Clipper Logistics plc (LSE: CLG) has acquired the entire issued share capital of UK-based consumer electronic repair services provider RepairTech Ltd., the company said.

Consideration is GBP 2.5m (USD 3.19m) in cash, with a further GBP 0.5m deferred for 12 months. Assets acquired with the business include net cash balances of approximately GBP 0.3m. The consideration is being funded from Clipper's existing cash and bank facilities.

RepairTech is based in Southam, Warwickshire.

According to Clipper, the effective handling of returned products is important to retailers and manufacturers to both protect margins and minimise working capital. Clipper's "Boomerang" service is designed to rapidly recover and return to saleable stock products returned by consumers.

The Boomerang service suite was extended by the acquisition of Servicecare Support Services Ltd in December 2014, and the acquisition of RepairTech enables the group to provide a range of returns management services across the whole spectrum of apparel, general merchandise and electronic and electrical equipment.

Clipper anticipates that the activities undertaken by RepairTech will enhance the range of services provided to existing Clipper customers, as well as attracting new clients to the group.

RepairTech was established in 1999 by the current managing director, Richard Costello. It is consistently profitable, and reported underlying earnings before interest and tax of GBP 644k on revenues of GBP 3.2m in its unaudited financial statements to March 2017.

The acquisition will be immediately earnings-enhancing to Clipper.

All members of the senior management team of RepairTech, including managing director Richard Costello, will remain with the business to continue to deliver significant organic growth both in its own right, and across the wider Clipper customer base.
Details
Date Published: 19/06/2017
Target: RepairTech Ltd
Country: UK
Deal Size: 3.19m (USD)
Sector: Electronics
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Clipper Logistics
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