Ensor buys Technocover
Ensor Holdings has taken a 90 per cent stake in Technocover, a Welshpool-based manufacturer and supplier of physical security products.
AIM-listed Ensor, a building products and packaging company based in the North West of England, has agreed to pay a nominal amount for Technocover, but will inject £1m in cash into the business to complete a restructuring exercise.
It has also agreed to buy the remaining 10 per cent of Technocover for £1m after 31 August 2015, subject to the company achieving an operating profit of at least £1.5m for the two year period to 31 August 2013.
Technocover's products are used to protect 'critical national infrastructure assets', operated by UK and European utility companies. In the year to 31 August 2010, the Welshpool business reported sales of £10.3m and an operating profit of £290,000.
Ensor's directors said they believe that government-driven, national security initiatives demonstrate resistance to recession. They added that the acquisition will in capitalised goodwill of approximately £500,000, that it will enhance earnings "immediately" and "represent an excellent return on investment".
