Vulcan Industries acquires Aftech for £1.55m
(VULC announced that it has acquired the entire share capital of Aftech Ltd, a sheet metal fabrication company specialising in laser cutting, bending and forming, together with its dormant parent company from Unity Global - FZCO in a deal worth £1.55m.
Vulcan, which seeks to acquire and consolidate engineering, manufacturing, and industrial SMEs, said it expects the acquisition is expected to be immediately earnings enhancing.
Aftech, a Swindon-based sheet metal contractor, complements the existing fabrication businesses within the group by introducing additional capacity, capabilities and skills.
For the year ended 30 November 2021 Aftech reported unaudited revenue of £1.182m and unaudited normalised EBITDA of £266,000. At completion, the Aftech Group is expected to have unaudited net assets of £0.94m and unaudited borrowings of £0.155m, respectively.
The total consideration payable under the terms of the acquisition is £1.55m to be satisfied by the issue of 123,307,433 new ordinary shares of £0.0004 each at a price of 1.257p a share.
In total, the consideration shares will represent around 22.4% of the enlarged share capital of the Company and together with the warrants around 25.8% of the fully diluted share capital.
An application has also been made for the 100,000,000 initial consolidation shares to be admitted to trading on Aquis Stock Exchange which is expected to formalise next week.
Commenting, Ian Tordoff, Executive Chairman said: “We are delighted to be working with Unity Group who have introduced Aftech. Aftech are already showing the benefits we expect them to bring to the Vulcan Group and will head the development of our fabrication activities ”
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