FORTEC purchased Display Solutions Limited and Components Bureau Limited through its UK subsidiary, Display Technology Limited, which is based in Chatham Kent.
With this acquisition, FORTEC continues its international expansion plans as the UK market offers further potential for the company, opening up new growth areas and opportunities for technologically orientated customers, as well as increasing the company's market share.
Earlier this year, FORTEC raised a total of €6.08million in order to finance the transaction.
In the financial year ending 31 December 2017 both companies together generated sales of €8.1million and generated an end of year profit (EBIT) of €0.6 million.
Following the acquisition, FORTEC expects to significantly improve its competitive position in the UK market, which it considers important for the future, regardless of political developments.
At the same time, FORTEC’s CEO, Sandra Maile considers that there is likely to be “the further possibility of additional potential company synergies, and with that the possibility of further increasing the value and strength of the FORTEC Group.”
FORTEC continues to pursue and focus its activities outside of Germany and is aiming to establish itself as an international market leader in the data visualisation sector.
The Corporate team at Thomson Snell & Passmore was led by Partner and Head of Corporate, Joanne Gallagher. Joanne was assisted by Corporate Associate, Faye Cook. Commercial Property Partner, Joanne Wright, and Solicitor, Nicole Priestley, advised on the property elements of the transaction. Ben Stepney, Senior Associate, and Nick Hobden, Partner, advised on the employment aspects of the deal.
Nigel Kimber and Anthony Hawkins of McBrides Accountants LLP advised on the Corporate Finance aspects of the transaction. Dr Jorg Fedtke of Husemann Eickhoff Salmen & Partner advised on the German and capital market requirements.
Commenting on the deal, Joanne Gallagher and Faye Cook said: “We are absolutely delighted to have acted for FORTEC, on this transaction which significantly bolsters its position in the UK market. FORTEC is a new client of the firm. As a team, we act for a number of UK subsidiaries of large international companies, in terms of assisting them expand and operate within the UK market. We look forward to seeing FORTEC’s continued growth both in the UK and internationally.”