Deltron Electronics - Acquisition
October 03 1997 - 4:00AM
UK Regulatory
RNS No 7079r
DELTRON ELECTRONICS PLC
3rd October 1997
#4.3m Acquisition of Freber Group - Sweden
Deltron Electronics plc ('Deltron), the specialist distributor
and manufacturer of electronic components to an international
client base, announces that it has today acquired the whole of
the issued share capital of Freber Elektronik Leasing AB and
its subsidiaries ('Freber), a private group based in Sweden,
for a maximum aggregate consideration of #4.3 million (SEK 53
million). Freber is engaged in the distribution of electronic
components within Sweden and has activities similar to
Deltrons distribution activities.
The initial consideration amounting to #3.52 million (SEK 43
million) has been satisfied on completion by the issue to the
vendors of 414,938 new Ordinary Shares of 5p each in Deltron
and #3.02 million (SEK 36.89 million) in cash, paid from
Deltrons existing resources.
Further consideration up to a maximum of #820,000 (SEK 10
million) will be payable, in cash, dependent upon Freber
achieving adjusted profits before tax of #2.46 million (SEK
30.0 million) in aggregate for the three financial periods
ending 30th September 2000. For the year ended 31st December
1996, Freber reported operating profit of #502,000 (SEK 5.88
million) on turnover of #4.62 million (SEK 56.4 million). Pre-
tax profits were #2,439 (SEK 29,800). As at 30th September
1997, Freber had net assets of #1.12 million (SEK 13.7
million).
Mr Jan Freander, one of the vendors, has entered into a service
contract to continue as Managing Director of Freber for a three
year period from completion. The other vendors have also
entered into service contracts and all have agreed to retain
the Ordinary Shares being issued as part of the consideration
for at least 12 months.
Paul Gourmand, Chairman of Deltron Electronics plc, commented:
"The acquisition of Freber, complements the recent acquisition
of Conelec A/S in Denmark, consolidates our European position
and represents a further step in Deltrons European Strategy,
confirming our commitment to becoming a pan-European
distributor and manufacturer.
"Freber is expected to make a positive contribution to the
Group from the outset and Mr Freanders considerable experience
in the electronic components market will be of particular value
in the further development of the Group."
For further information contact:
Christopher Sawyer, Chief Executive, Deltron Electronics plc
Tel. No. 01638 561156
Michael Padley - Mobile: 0374 278 619
Zena Bates - Mobile: 0374 426 294
Buchanan Communications - Tel. No. 0171 466 5000
END
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