TIDMPHTM
RNS Number : 0177X
Photo-Me International PLC
25 April 2019
25 April 2019
Photo-Me International plc
("Photo-Me" or "the Group")
Acquisition of SEMPA
Photo-Me enters the $154 billion fresh fruit and vegetable juice
market (*)
Photo-Me (PHTM.L), the instant-service equipment group, is
pleased to announce that it has acquired 96% of the issued share
capital of SEMPA Sarl ("Sempa"), a company incorporated in France
which specialises in commercialised self-service fresh fruit juice
equipment. The gross consideration payable for the acquisition is
EUR20.64 million, funded by a new debt facility of EUR20.0
million.
Sempa is the leader in France for the commercialisation of
self-service fresh fruit juice equipment. The business operates via
a lease model, whereby Sempa sells equipment to customers via lease
finance agreements. Sempa receives full payment upon sale of the
equipment and the lease finance contracts are then subject to
renewal every 12-months on average. Sempa's customers include
retail, office and work spaces, and small businesses.
Following the acquisition, the Group will leverage Photo-Me's
significant innovation expertise and Sempa's industry experience to
develop innovative self-service fresh fruit juice equipment.
This acquisition is in line with Photo-Me's strategy to
diversify its vending operations and will develop a new segment
alongside its Identification, Laundry and Kiosk businesses.
Photo-Me intends to become the global leader in self-service
fresh fruit juice machines and, with this acquisition, will pursue
a strategy to replicate the success Sempa has already seen in
France, initially rolling out the equipment across its European
network. Photo-Me will further benefit from the cross-sale of its
instant-service offering by introducing photobooths, laundry units
and kiosks to the retail sites where Sempa has already established
a footprint.
The new estate will be supported by the Group's existing network
of regional field engineers as well as its sales team at a low
incremental cost to the Group.
Sempa's profit before tax for the year ended 31 December 2018
was EUR3.7 million, its net cash position as at 31 December 2018
was EUR7.7 million and the value of its gross assets was EUR11.6
million, all as derived from audited accounts of Sempa for the year
ended 31 December 2018. Sempa's net cash position upon acquisition
is more than EUR9.0 million, and hence the effective consideration
paid is approximately EUR11.6 million. The majority of Sempa's
revenue is based on recurring annual lease finance contracts.
This acquisition is expected to be earnings enhancing in the
financial year ending 30 April 2020 and thereafter, and in the
financial year ending 30 April 2020 is expected to contribute
revenue of more than EUR10.0 million and approximately EUR3.7
million profit before tax.
Pascal Faucher, CEO of Sempa will remain with the acquired
business in order to drive the growth of this important new segment
of Photo-Me. Mr Faucher will receive three million share options in
Photo-Me over a period of three years. These will be issued at the
current market price prevailing at the time and, to the extent
necessary, the Company will seek shareholder approval for this
grant.
Commenting on the acquisition, Serge Crasnianski, Chief
Executive Officer & Deputy Chairman of Photo-Me, said:
"We are excited to announce this acquisition which will mark
Photo-Me's entry into the $154 billion fresh fruit and vegetable
juice market. The growing importance people place on their health
and wellbeing makes it an exciting time to enter this market, with
the health benefits of juice driving its popularity and
potential.
"We have the opportunity to become a leader in this industry
based on our existing commercial relationships and expertise in
instant vending equipment innovation. Sempa has been highly
successful in the French market and we look forward to replicating
this initially across our network in Europe. The acquisition
represents part of our ongoing strategy to develop new and
complementary products to drive the long-term growth of
Photo-Me."
(*) source: Global Fruit and Vegetable Juice Market Research
2018-2025; Grand View Research.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Photo-Me International plc +44 (0) 1372 453 399 / ir@photo-me.co.uk
Serge Crasnianski, CEO
Stéphane Gibon, CFO
Hudson Sandler +44 (0) 20 7796 4133
Wendy Baker/ Emily Dillon/ Nick photo-me@hudsonsandler.com
Moore
NOTES TO EDITORS
Photo-Me International plc (LSE: PHTM) operates, sells and
services a wide range of instant-service vending equipment,
primarily aimed at the consumer market.
The Group operates approximately 47,000 vending units across 18
countries and its technological innovation is focused on three
principal areas:
-- Identification: photobooths and integrated biometric identification solutions
-- Laundry: unattended laundry services, launderettes, B2B services
-- Kiosks: high-quality digital printing
In addition, the Group operates vending equipment such as
children's rides, amusement machines and business service
equipment.
Whilst the Group both sells and services this equipment, the
vast majority of units are operated and maintained by Photo-Me.
Photo-Me pays the site owner a commission based on turnover, which
varies depending on the country and location of the machine.
The Group has built long-term relationships with major site
owners and its equipment is generally sited in prime locations in
areas of high footfall such as supermarkets, shopping malls
(indoors and outdoors) and public transport venues. The equipment
is maintained and serviced by an established network of 700 field
engineers.
The Company's shares have been listed on the London Stock
Exchange since 1962.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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