Mon, 12 Jul 2021 | BUSINESS SALE
Inkjet printing technology firm Xaar plc has completed the acquisition of FFEI, an integrator and manufacturer of digital inkjet systems and life sciences technology, for £9.1 million. A £3.7 million cash consideration was paid on the deal’s completion, with the remaining £5.4 million to be paid out as a deferred consideration over three years.
The acquisition is slightly over a 9x multiple of FFEI's most recently reported post-tax profits of £1.014 million, which it generated on turnover of around £11.5 million for the year ended March 31 2020. The firm’s revenue is reported to have fallen to £9.9 million in the year to March 31 2021.
According to Hertfordshire-headquartered Xaar, the acquisition will enhance the firm’s capabilities and skills, enabling it to provide a more comprehensive solution for its customers. It adds that its expanded capabilities will help its OEM and UDI (User Developer Integrator) customers to reduce development timescales and time to market.
Hemel-Hempstead-based FFEI specialises in print systems and printbar manufacturing and has numerous joint development projects with leading organisations in the life sciences and digital inkjet sectors.
Xaar says it expects that the acquisition will be “slightly earnings accretive” over the first year and that the additional expertise and resources provided by FFEI will help to drive long-term profitable growth for the business’ core printhead operation.
Xaar CEO John Mills said: "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."
FFEI CEO Andy Cook added: "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."
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