Markel is a leading North American manufacturer of adhesive floor mats and tacky rollers for use in medical clean rooms, electronic and industrial assembly areas, construction site and sports venues.
As at 31 December 2016, the unaudited gross assets acquired were USD$1.2 million. Underlying adjusted EBITDA for the year ended 31 December 2016 was USD$1.7 million. The acquisition is expected to be earnings enhancing in the first full year and will be funded from existing cash reserves and bank facilities.
The Board believes the acquisition of Markel will give the following benefits:
· Markel's largely North American customer base has a similar profile to Scapa's, offering cross-selling opportunities
· Markel's high quality core clean room contamination prevention products will enhance Scapa's current products offerings in Europe
· Meaningful overlap in supply chain and manufacturing technology as well as proximity of Markel's manufacturing sites to Scapa offer an opportunity for efficiencies
Commenting on the acquisition, Heejae Chae, the Group Chief Executive Officer of Scapa, said:
“The acquisition of Markel is a part of our Industrial strategy to further drive the Return on Capital Employed through concentration on our core customers and markets as well as optimisation of our manufacturing assets.”