COPENHAGEN (dpa-AFX) - McBride plc (MCB.L), a manufacturer of Co-manufactured and Private Label products for the Household and Personal Care markets, announced Monday that it has agreed to acquire Danlind a/s, a Denmark-based supplier of auto dish-wash and laundry products.
Consideration of 10.8 million pounds will be payable to the shareholder of Danlind, Lind Holdings ApS. Around 28 million pounds of net debt in Danlind will be assumed by McBride at completion. The acquisition will be funded from McBride's existing banking facilities.
The acquisition is expected to be immediately earnings enhancing for McBride. Post-tax return on invested capital is expected to meet cost of capital in the third full year of ownership.
McBride expects to realise significant commercial, technical and operational improvement synergies from the acquisition.
The acquisition, which is subject to customary regulatory and closing conditions, is expected to complete in early October 2017.
On completion, Danlind, the management team and its employees will form part of the Household products segment.
Danlind operates from three manufacturing sites in Denmark, and has approximately 250 employees. For the year 2016, Danlind reported revenues of 58.4 million pounds, EBITDA of 1.6 million pounds, and a loss before tax of 1.3 million pounds.
For its financial year 2017, on a standalone basis, Danlind is currently expected to generate about 2.5 million pounds of EBITDA.
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