MBH Corporation plc acquires Robinsons Caravans and establishes new Leisure vertical
London, 16 March 2020 - MBH Corporation plc (MBH), a diversified investment holding company, is continuing its acquisition strategy welcoming its 11th company and establishing a new vertical - Leisure. With the 100% acquisition of Robinsons Caravans, MBH further expands its portfolio in the UK with a company that, by the end of its 2019 financial year, had generated unaudited revenues of GBP18 million and an EBIT of GBP1.05 million. Including this acquisition the pro-forma revenues of MBH group portfolio companies rise to over GBP 125 million.
Acquisition of an established caravan & motorhome company in a fast-growing industry
Robinsons Caravans Ltd has been established since 1963, as a family owned business, that has been trading within the caravan industry for over 54 years, throughout Chesterfield, Derbyshire, Worksop and Nottinghamshire in the United Kingdom. In 2019 the company sold 1,200 units, which represents most of the company's revenue. Further information about Robinsons Caravans Ltd can be found on the corporate website www.robinsonscaravans.co.uk.
The acquisition of Robsinson Caravans will establish a fifth industry vertical, "Leisure", alongside Education, Construction Services, Engineering and Health. The Leisure vertical will be led by Paul Seabridge, CEO of Robinson Caravans.
In accordance to statistics released by the NCC (the UK trade body representing the collective interests of four product sectors - tourer, motorhome and caravan holiday home (leisure products) and residential park homes), the caravan & camping industry contributes £6bn to the UK economy with 98% of tourer caravans being bought by UK consumers.[1] The UK motorhome market experienced annual growth rates since 2013, having almost doubled the number of new registrations per year to over 14,000.
MBH issues bond to acquire 100% of Robinsons Caravans in line with AgglomerationTM Strategy
In line with MBH's established Agglomeration strategy, this acquisition is expected to be earnings per share ("EPS") accretive. Unlike previous acquisitions, MBH has elected to not issue further shares for this transaction, but instead issue a note, equivalent to a bond to complete this transaction. This decision has been made to preserve the EPS accretive strategy that MBH pursues whilst MBH is currently under leveraged and market conditions are less favourable. Future acquisitions may involve the use of bonds in combination with equity.
The total consideration for the acquisition is approximately between GBP7.2m and GBP 8.6m (which includes the acquisition of net assets of approximately GBP 2.5m) which is 100% settled by way of an unlisted loan note at the following terms:
- 5 year maturity with principal payable at maturity; and
- 5% coupon rate per annum payable semi annually.
The final consideration amount will be finalised once the audited financials statements have been completed for the years ended 31 December 2019 and 31 December 2020.
Callum Laing, CEO of MBH Corporation plc: "We are looking forward to establishing the new 'Leisure' industry vertical in MBH Corporation plc. The Robinsons Caravans team bring with them generations of experience in their industry, making them the perfect leaders of the new group. Their ambition to grow through acquisitions allows MBH to support them in one of the many benefits of joining this growth platform, and we look forward to encouraging them to do that as part of the group."
Paul Seabridge, CEO of Robinsons Caravans said "The caravan and motorhome industry is very fragmented and as such we felt joining forces with MBH, by joining the group, would provide a better platform to take advantage of this. There are a number of operators and being part of a diversified investment vehicle and having access to the public markets means consolidating some of the operators through acquisitions, providing a tremendous opportunity to quickly take advantage of this - we want to build the number one caravans and motorhome group providing a superb experience for customers and staff as we go on this exciting journey with MBH together."
[1] https://www.thencc.org.uk/the_ncc/aboutNCC.aspx
About MBH
MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium enterprises across multiple geographies and sectors that are well established, profitable and looking to scale. By leveraging the Agglomeration strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent and accretive acquisition of excellent companies.
www.mbhcorporation.com
Further information on 'AgglomerationTM model':
In 2020, Callum Laing, CEO of MBH Corporation plc, published his book 'Entrepreneurial Investing'. The book explains the opportunity for sophisticated investors to get access to good small businesses through the AgglomerationTM model that MBH employs. The book shows how this investment vehicle can be both high-growth and dividend yielding. Further information is available at www.entrepreneurial-investing.com.
Contacts for IR and media enquiries:
MBH Corporation plc, Charlotte Williams, charlotte@unity-group.com, +44 (0)770 396 3953
Kirchhoff Consult AG, Nicole Schüttforth, nicole.schuettforth@kirchhoff.de, +49 (0)40 609186 64
16.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
MBH CORPORATION PLC 
