Xaar PLC Acquisition of FFEI (8371E)
12 Julio 2021 - 1:00AM
UK Regulatory
TIDMXAR
RNS Number : 8371E
Xaar PLC
12 July 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement
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Xaar plc
Acquisition of FFEI
Deal to strengthen Xaar's capabilities and support growth
strategy
Xaar plc ("Xaar"), the leading inkjet printing technology group,
is pleased to announce it has completed the acquisition of FFEI
Limited ("FFEI"), a leading integrator and manufacturer of
industrial digital inkjet systems and digital life science
technology based in Hemel Hempstead, UK (the "Acquisition").
The addition of FFEI strengthens Xaar's capabilities and skills
and will help to provide a more comprehensive solution for its
growing number of OEM and UDI (User Developer Integrator)
customers. The deal will accelerate Xaar's existing growth strategy
and will enable Xaar to capture additional opportunities in
vertically integrated solutions. This additional capability will
enable our customers to reduce their development timescales and
shorten their time to market.
FFEI has a strong reputation in the industry for being highly
innovative and for advanced imaging solutions. The core specialisms
are in print systems and printbar manufacturing, which have enabled
FFEI to establish several joint development projects with world
leading organisations in both digital inkjet and life sciences.
In the year to 31 March 2021 FFEI generated revenue of GBP9.9
million with an operating margin of 9%. FFEI employs in excess of
60 people who will remain with the business. The initial cash
consideration of GBP3.7 million was paid on completion, which
reflects existing FFEI free cash reserves, with an additional
GBP5.4 million deferred consideration to be paid out over three
years.
Whilst the Board expects the Acquisition to be slightly earnings
accretive in the first full year of ownership, the acquired
expertise and resource will also be utilised for projects that will
drive long term profitable growth in Xaar's core printhead
business.
John Mills, CEO of Xaar, commented "Having restructured and
stabilised our core printhead business, the acquisition of FFEI
will accelerate our strategy and expand our customer offering in a
range of markets. As well as providing a number of ready-made
solutions, the acquisition will further enhance Xaar's world class
expertise.
"I've personally known the FFEI team for many years and have
long admired their capabilities having previously worked closely
with them. We are very excited to welcome them to Xaar and look
forward to integrating the business as we continue to deliver on
our strategy."
Andy Cook, CEO of FFEI, commented "We are delighted to become
part of Xaar which represents a fantastic opportunity for the
business to develop and grow. Xaar has been a long-term market
leader with great technology and great people and is a perfect fit
for the business."
Enquiries:
Xaar plc +44 (0)1223 423 663
John Mills, Chief Executive Officer
Ian Tichias, Chief Financial Officer
Tulchan Communications +44 (0)20 7353 4200
James Macey White
Giles Kernick
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END
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