Carr’s Milling Industries Plc, an agriculture, food and engineering group, has bought Hans Wälischmiller, a German engineering company, out of administration for €5.5 million in cash.
Carr’s Milling Industries Plc, an agriculture, food and engineering group, has bought Hans Wälischmiller, a German engineering company, out of administration for €5.5 million (£4.9 million) in cash.
The seven-digit deal will be financed through new bank funding and the company’s existing cash pool. An initial payment of €2.8 million will be made in March, followed by €2 million in August. A deferred element of €700,000 will be paid dependent on receipt of progress payments from Wälischmiller on an order for remote handling technology.
Wälischmiller is based in Markdorf in southern Germany and was placed into administration in March 2008. For the nine months ended 31 December 2008 – the period when it was in administration – the business made a pre-tax loss of €186,000 on revenues of €5.2 million. The gross assets of the business are €4.5 million.
Carr’s says Wälischmiller will complement its Swindon-based business, Carr’s MSM, which supplies remote handling equipment to the nuclear industry and research establishments. The German firm will also expand its customer base and provide additional design and technical know-how.
In the first six months to 28 February 2009, Carr’s expects to make a pre-tax profit of £5.2 million on revenues of £162 million, broadly similar to the first half of last year.
In September, Carr’s raised £2.5 million net in a placing of 410,000 new ordinary shares at 660p per share, a total of 4.9 per cent of the company’s capital.