REG - Thorpe(F.W.) PLC - Acquisition

FW ThorpeAnnouncement

02/12/2021 07:00

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RNS Number : 2959U  Thorpe(F.W.) PLC  02 December 2021

FW Thorpe Plc

("FW Thorpe" or the "Company")

Acquisition

 

FW Thorpe is pleased to announce the acquisition of 50% of the share capital
of Ratio Electric B.V. ("Ratio") in the Netherlands, a specialist in
electrical power connection and distribution systems.

 

FW Thorpe has paid a consideration of €6.8m (circa £5.8m) funded from the
Company's existing cash reserves.

 

The acquisition is expected to enhance earnings per share in the financial
year ending 30 June 2023, providing potential growth opportunities and
complementing the Company's existing technologies.

 

About Ratio

 

Established in 1980, Ratio specialises in the development, manufacture and
supply of electrical power connection and distribution systems.  Revenues are
derived from four core areas, e-mobility (electrical vehicle chargers and
cables), marine, data centres, and industry. During 2020, e-mobility accounted
for nearly 60% of the business.

 

The addition of Ratio will strengthen the Group's portfolio of green economy
products with the introduction of electric vehicle charging solutions for the
UK, whilst building upon successful sales that Ratio has already established
in the Netherlands. The Group's know-how in product development, software and
manufacturing will support Ratio's future growth.

 

The business employs 30 people in Nijkerk, the Netherlands.  Products are
sold both domestically and distributed overseas.

 

The forecast results to December 2021 expect Ratio to achieve annual revenue
of €8.0m with solid returns in keeping with Group operating profit levels.

 

Chairman, Mike Allcock commented:

 

"This is an exciting opportunity for the Group. FW Thorpe's know-how in
electrical engineering, manufacturing and lighting, combined with Ratio's
experience in electrical vehicle charging will allow the introduction of new
products into the UK market as well as supporting growth in Ratio's existing
markets.

 

We see similarities in technology and engineering skills, giving the Group the
opportunity to diversify into new areas of engineering with high growth
potential."

 

 

For further information please contact:

 

F W Thorpe Plc

Mike Allcock - Chairman, Joint Chief Executive
 
Tel:  01527 583200

Craig Muncaster - Joint Chief Executive, Financial
Director                               Tel:
01527 583200

 

Singer Capital Markets - Nominated Adviser

Steve Pearce  / James Moat
                                             Tel:  020
7496 3000

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