Clipper patches up deal for £2.5m repair business
Clipper Logistics has acquired electronic specialist RepairTech in a £2.5m deal.
The Warwickshire-based business specialises in consumer electronic repair services, and fits in with Leeds-based Clipper’s returned products service Boomerang, enabling saleable stock to be recovered.
Retail logistics business Clipper has bought Repair Tech to supplement its returns management service, having already bought Servicecare Support in December 2014.
Southam-based RepairTech was established in 1999 by the current managing director, Richard Costello. It is consistently profitable, and reported underlying earnings before interest and tax of £644,000 on revenues of £3.2m in the year to March 2017.
The acquisition will be immediately earnings-enhancing, said Clipper, and a further £500,000 for the business will be deferred for 12 months.
All members of the senior management team of RepairTech, including managing director Richard Costello, will remain with the business to continue to deliver growth.
Steve Parkin, executive chairman of Clipper, said: “RepairTech is a robustly profitable and cash generative business. The acquisition will enable us to offer existing and prospective customers of both RepairTech and the Group a truly comprehensive range of returns management services.
“We welcome the employees and management team of RepairTech to the Clipper group, and look forward to continuing to build the breadth and depth of our services and customer base.”
It is the latest deal for Clipper, which has become acquisitive of late having bought a £12m distibution business, Tesam, last month to expand its Southern operations.