Tue, 27 Aug 2024 | BUSINESS SALE
Autotrak Portable Roadways, a supplier of portable roadways and one of the UK’s largest suppliers of panels to the film and TV sector, is set to be acquired in a deal worth up to £21.5 million.
Facilities by ADF, a provider of premium serviced production facilities to the film and high-end television (HETV) industry, has conditionally agreed to acquire the Oxfordshire-based company for an initial consideration of £10 million and 5,915,357 Consideration Shares.
A contingent consideration of up to approximately £4.2 million will also be payable in equal annual tranches over three years from FY25 to FY27 contingent on maintenance of forecasted FY24 levels of adjusted EBITDA performance.
An earnout consideration of up to approximately £4 million will also be payable in FY28, based on growth in adjusted EBITDA performance from FY25 to FY27.
The full consideration, valued at £21.5 million, would represent a 5x multiple of Autotrak’s adjusted underlying EBITDA of £4.3 million generated in the year ending December 31 2023. During that period, the company generated revenues of £8.3 million.
In addition to its core business supplying roadway panels to the UK film and TV sector, Autotrak also services festivals, outdoor events and construction-related industries, with a client base numbering more than 165 customers.
Autotrak Managing Director Michael Fox said that “ADF's expertise in the film and TV sector will positively influence our day-to-day operations, enhancing the value we deliver to our customers.”
Fox continued: "Aligning with ADF's vision of industry leadership, for everyone at Autotrak, this integration represents an exciting opportunity to expand our reach and influence."
Facilities by ADF Chief Executive Marsden Proctor said that the conditional agreement “marks a material step in our stated strategy of being the provider of choice for the HETV & film industry across a diversified product and service offering” and that the deal would be “a further endorsement of ADF's aspirations of generating £100m of revenues in the medium term.”
He added: “ADF already has an excellent working relationship with Autotrak which has provided demonstrable evidence of the strong cultural and technological fit which will be of great benefit to the enlarged group's customers."
Find out more about the benefits and challenges associated with using an earnout structure in M&A deals
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