Textile manufacturer snapped up in £1.2m deal
A Batley-based business, which designs and manufactures sample books, shade cards and other display solutions, has been acquired in a £1.2m deal.
Travelfast (TFT), which trades as Sampling International, was purchased by CEPS’ subsidiary company, CemTeal.
The vendors of TFT are founding member and major shareholder, Stephen Hubbard, and other shareholders. Hubbard will be managing director of CEM Press, the trading company of CemTeal, and Travelfast, whilst Richard Briggs of CEM Press will be finance director of the combined businesses.
Hubbard is contracted to remain with the newly formed business for a minimum of three years from completion to support the integration of both companies and to assist in the development of a plan to support its long-term financial viability.
In the year ended 31 December 2017, TFT’s sales were £5.3m, EBITDA was £102,496 and loss before taxation was £32,540. At 31 December 2017, net assets were £231,277.
Trading performance and net assets of TFT in 2018 were behind those of 2017, but in line with management’s expectations for the period.
The acquisition of TFT will make the newly formed business one of the largest individual pattern book and shade card makers in the UK, with two production facilities.
The directors of CEPS said they believe that the acquisition of TFT by CemTeal will be a “valuable addition” to CEPS.
The acquisition will be funded from the cash flow of the Group. In March 2019 David Horner, chairman of CEPS, lent £100,000 to TFT. Horner’s loan is unsecured and bears interest at 10% per annum. This loan was made to allow TFT to meet certain liabilities.
On completion of the deal, CemTeal injected £500,000 into TFT in part to be used for working capital purposes and in part to repay the loan to Horner.
