Litho Supplies has strengthened its hold on the wide-format market with the buyout of supplier Andersons Graphica Plus for an initial cash payment of £600,000 and is "actively pursuing" further acquisitions.
The deal, which completed yesterday (23 October), followed two years of discussion between the firms. It included a share issue of £200,000 and a £100,000 deferred cash consideration payable 12 months after completion.
According to chief executive Michael Hammond, Litho's acquisitive strategy is key to growth in the current "stagnant" climate. Its half-year results showed a slight uplift in profits and turnover of 5.65% and 2.84%, respectively.
Hammond added that Andersons' wide-format expertise underpinned the move. "We've been moving into wide-format for years. It's a growth area where there is an opportunity to increase turnover," he said.
The move will give 230-staff Litho Supplies access to a wider customer base and allow it to distribute kit from Andersons' portfolio, which includes wide-format machines from Mimaki and Mutoh.
Hammond added: "We have an allied product range. It's complementary to what we do and it's an opportunity to move forward in the market."
He said that Andersons will "continue to trade as before, just 100% owned by us".
Calum Anderson, who held the majority stake in the Hampshire-based family business, will retire, while younger brother Greg takes on a role as Litho Supplies sales manager from today.
According to Hammond, "staff will remain in the short term, but we will continue to evaluate the business along with the Andersons".
The deal, which completed yesterday (23 October), followed two years of discussion between the firms. It included a share issue of £200,000 and a £100,000 deferred cash consideration payable 12 months after completion.
According to chief executive Michael Hammond, Litho's acquisitive strategy is key to growth in the current "stagnant" climate. Its half-year results showed a slight uplift in profits and turnover of 5.65% and 2.84%, respectively.
Hammond added that Andersons' wide-format expertise underpinned the move. "We've been moving into wide-format for years. It's a growth area where there is an opportunity to increase turnover," he said.
The move will give 230-staff Litho Supplies access to a wider customer base and allow it to distribute kit from Andersons' portfolio, which includes wide-format machines from Mimaki and Mutoh.
Hammond added: "We have an allied product range. It's complementary to what we do and it's an opportunity to move forward in the market."
He said that Andersons will "continue to trade as before, just 100% owned by us".
Calum Anderson, who held the majority stake in the Hampshire-based family business, will retire, while younger brother Greg takes on a role as Litho Supplies sales manager from today.
According to Hammond, "staff will remain in the short term, but we will continue to evaluate the business along with the Andersons".
Source: printweek
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