Barton logistics group Servicecare acquired in £5.7m deal
A STAFFORDSHIRE support services company has been acquired by Leeds-based based logistics group, Clipper, in a deal worth £5.7m.
Clipper, which specialises in logistics services to the retail sector, has acquired the entire issued share capital of Servicecare Support Services.
Servicecare is also a logistics supplier to the retail sector, with a number of consumer electronics manufacturers as clients. The business operates across the UK from sites in Barton-under-Needwood and Oldham.
Servicecare has been trading since 1995 and counts Argos, Richer Sounds, Panasonic, Shop Direct Group and Tefal amongst its client base. Its wholly owned subsidiary Electrotec International was acquired by Servicecare in 1999 and trades as a retail supplier, selling refurbished consumer electrical goods.
In its financial year ended September 30, 2013, Servicecare’s audited accounts reported revenue of £10.4m, pre-tax profit of £1m and gross assets of £3.9m. Its unaudited financial performance for the year to September 30, 2014 shows pre-tax profit of £1.2m on revenue of £10.8m.
The deal is being funded from Clipper’s existing cash and bank facilities. Of the total cash consideration of £5.7m, £3.7m is payable at completion, with £1m due six months after completion and a further £1m due 12 months after completion.
Servicecare was principally owned by CEO Jerry Day, managing director Dave Aspin and Business Development Director Gary Furness. Aspin will continue in his current role post-acquisition, while Day and Furness will remain with the business in a consulting capacity for up to 12 months post-acquisition.
In the financial year to April 30, 2014, Clipper launched its “Boomerang” brand, which was introduced to focus on the growing requirement for returns management services by the clothing and non-electrical general merchandise sectors. As part of the group’s strategy to enhance its Boomerang services to both new and existing customers, the board has sought to identify potential acquisition targets that would enable the Boomerang service offering to be expanded to cover electrical goods.
“With its long trading history and blue-chip client base Servicecare is a strong fit within the Boomerang brand and it is expected that the business will be immediately earnings-enhancing to Clipper,” said the latter.
Steve Parkin, Executive Chairman of Clipper, added: “The purchase of Servicecare is an important step towards broadening the Boomerang brand. The returns arena is the battleground for competitive advantage and we are delighted to add a further string to our bow. Servicecare is a successful and profitable business with an impressive blue chip client base that complements Clipper’s already strong market position and long-standing relationships with retailers.”
