Addvise Group has signed a letter of intent with the shareholders of MRC Systems regarding the acquisition of 100% of the shares in the latter.
MRC develops and manufactures clean rooms for the pharmaceutical industry and hospitals. The company is based in Dubai with headquarters and a production facility, and owns another production facility in Spain. It has 110 employees.
The company's net sales for the financial year 2019/2020 are expected to be approximately $9.80m with an adjusted operating profit of approximately $1.10m.
The transaction will comprise total purchase price of approximately $8m, divided into an initial purchase price of approximately $5m and two possible additional purchase prices at a maximum of approximately $1.50m each provided that the sellers achieve predetermined targets.
The price includes an unleveraged production property with an estimated value of $1.30m. Addvise says the financing of the acquisition is made its own resources in addition to loans. Addvise hopes the acquisition will have a positive effect on its 2021 financial year.
The transaction is subject to due diligence and that the parties agree to enter into a share transfer agreement. Share transfer agreements and access are planned during Q1 2021.
"MRC is a profitable and well-run business with a well-established position in the cleanroom industry. The company has been a partner of one of our subsidiaries for many years. The acquisition strengthens Addvise's market positions and broadens our product portfolio within the lab,” says Rikard Akhtarzand, CEO of Addvise.
