Scott Technologies Ltd has announced that the Board has approved in principle the purchase of the business assets and intellectual property of Alvey Group, headquartered in Belgium with operations in France, Czech Republic and the UK.
Specialists in palletising, conveying and warehouse automation, Alvey is closely aligned to SCOTT, with products and markets that are complementary to SCOTT. This is a key development that adds to the overall automation capabilities, while helping fulfil our strategic expansion goal and accelerating our access to international markets. With a history that spans over 50 years, Alvey brings with it a high caliber workforce and expertise that will greatly add to our product range and software capabilities, while allowing Scott access to skills and technology faster than could be developed in-house.
Due diligence has been completed with the next step being finalisation of the sale and purchase agreement and a target acquisition date of 4 April 2018. The transaction has a value of €12.1 million, subject to final adjustments, and is expected to have a positive impact on earnings from completion.
The purchase will be funded by cash reserves (SCOTT’s August 2017 cash balance was NZ$26.7m).