Under the terms of the deal, £750,000 of the cash sum was paid on completion and the remainder will be paid in 12 months time.
The deal was financed by a bank loan and Stanley Gibbons’ existing cash reserves.
Benham produces first day cover stamps for the collectors market as well as selling new issue stamps and other collectables such as autographs. The mail order company trades in Jersey and the UK. Benham was acquired from the retail group Flying Brands, to which it contributed a pre-tax profit in 2009 of £410,000 on a turnover of £2.96 million.
Mike Hall, chief executive of Stanley Gibbons, comments: ‘Benham is a low risk bolt-on acquisition providing a strong return on capital, high level of continuity revenue, good cash flows and diversification of revenue streams. It will provide opportunities for Stanley Gibbons to diversify into other collectibles markets and add specialist skills in volume mail order, collector club management and in-house design.’
London-based Stanley Gibbons is an AIM-listed trader of stamps and related philatelic products. The deal is Stanley Gibbons’ second acquisition this month following the £300,000 purchase of stamp dealers Nigel Haworth.
Stephen Cook, chief executive of Flying Brands, adds: ‘The disposal of Benham is a continuation of the Group’s strategy of focusing on its core divisions of Garden and Gifts and on businesses with good online growth prospects.’