VOLVERE PLC

M&A Activity • Mar 26, 2015

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 5686I

Volvere PLC

26 March 2015

26 March 2015

Volvere plc

Acquisition

Volvere plc ("Volvere"), the growth and turnaround investment company, is pleased to announce the acquisition of Impetus Automotive Limited ("IAL").

IAL's principal activity is the provision of consulting services to the automotive sector, including vehicle manufacturers, dealerships and national sales companies.  The company, which has UK offices in Warwick and Cranfield, employs approximately 200 people serving clients in the UK and a number of other international markets.  Further information on the IAL's activities can be found at www.impetusautomotive.com.

Volvere, through a wholly-owned subsidiary,  is settling certain debt obligations of IAL's parent company and acquiring the entire share capital of IAL for a total cash consideration of approximately £1.3 million, to be satisfied from Volvere's existing cash resources.  It is expected that Volvere's shareholding in IAL will reduce through the issue of new equity to key stakeholders in due course.  Volvere will make working capital facilities available to IAL.

The estimated fair value at completion of the underlying net assets being acquired is approximately £1 million.  For the 10 month period ended 31 January 2015, IAL's unaudited net revenue was £9.7 million with an adjusted* loss before tax of £0.1 million. For the 12 month period ended 31 March 2014, being the period representing the last audited annual financial information, IAL reported £15.6 million of revenue and profit before tax of £1.5 million. The reported profit figure excludes any allocation of certain central overhead costs which were previously borne by IAL's parent company. 

Commenting on the transaction, Jonathan Lander, Chief Executive Officer of Volvere, said:

"We are pleased to acquire IAL, a consulting business with a long history and track record of success.  The global automotive market faces continual challenges and IAL's deep industry insight puts it at the forefront of being able to offer clients value-enhancing solutions.  Volvere looks forward to supporting IAL's management and staff in delivering continued success and growth."

*    stated after allocating to IAL certain on-going central costs, currently borne by another Impetus group company, amounting to £0.65 million for the 10 month period.

For further information:

Volvere plc

Jonathan Lander, Chief Executive

+ 44 (0) 20 7634 9700

N+1 Singer (Nominated Adviser & Broker)

Aubrey Powell / Richard Salmond

+ 44 (0) 20 7496 3000

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQPKADKDBKDDNB