02 April 2007 ~ Raymarine plc (“Raymarine”), a global leader in the supply of electronic products to the leisure marine market, today announces the acquisition of SDM Electronique SAS (“SDM Electronique” or “SDM”), the sole distributor of Raymarine products in France, Monaco and French overseas territories, from Azerraf Finance for an initial cash consideration of €7.5 million (£5.1 million). Adeferred consideration, to be calculated by reference to SDM’s levels of inventories, net assets and net debt, of up to a maximum of €5 million (£3.4 million) will be payable. The whole of the consideration is payable in cash using Raymarine’s existing facilities.
Founded in 1982 by John Azerraf, SDM operates from a single facility in Paris and employs approximately 20 people across its sales, distribution and service and repair operations. In addition to Raymarine products, SDM also distributes a small number of products manufactured by third party suppliers which SDM expects to continue distributing. John Azerraf will remain with SDM for an interim period prior to retirement in order to ensure a smooth handover to a new Managing Director.
For the year ended 31 December 2006, SDM Electronique reported revenues of €19.4 million (£13.2 million), pre tax profits of €3.3 million (£2.2 million) and gross assets of €7.7 million (£5.2 million).
The acquisition is expected to be earnings enhancing in the first full year of ownership.
Commenting on the acquisition, Malcolm Miller, Chief Executive of Raymarine, said:“SDM is an excellent business whose team have an intimate knowledge of Raymarine’s core market and have built excellent trading relationships and a leading market share. I am delighted that we have reached agreement to acquire this business; France is an important and growing market for Raymarine.”
For further information:
Raymarine plc
Malcolm Miller, Chief Executive
Tony Osbaldiston, Finance Director
Telephone: 023 9269 3611
Hogarth Partnership Limited
Chris Matthews
Andrew Jaques
Charlie Field
Telephone: 020 7357 9477
