MBH COMPLETES ACQUISITION OF LOGISTICA TRAINING TO SUPPORT GROWTH OF ITS EDUCATION INDUSTRY VERTICAL
London, 9 June 2020 - MBH Corporation plc (MBH), a diversified investment holding company, is continuing to pursue its acquisition strategy by welcoming its 11th company which will sit within its established Education vertical.
MBH is further expanding its UK portfolio with the 100% acquisition of Logistica Training Limited. Logistica delivers training to the essential, and growing Health and Social (H&S) care sector and had generated Revenues of GBP 1.9m and an EBIT of GBP 0.8m in its 2019 audited financial year. This acquisition will see the pro-forma revenues of MBH group portfolio companies rise to over GBP 81m.
Logistica operates within a fast-growing industry sector and was established in 2012 as a vocational training business. The training the company provides is fully funded by the EU via the Educational and Skills Funding Agency and Prime contractors - skills support to the workforce. Logistica has also recently started to deliver on-line training to non H&S care organisations.
Changing demographics are supporting Logistica's growth. The population aged 65 and above is projected to grow from 10.2 million to 14.1 million between 2018 and 2035. Based on growth of the population aged 65 and above, by 2035 the sector may need 580,000 new jobs (36% growth). Based on growth of the population aged 75 and above, by 2035 the sector may need 800,000 new jobs (50% growth).
The acquisition of Logistica will reside within MBH's education vertical alongside Acacia Training and the Parenta Group. MBH's verticals comprise of Education, Construction, Health and Leisure. Leisure is the most recently established vertical with the acquisition of Robinson's Caravans earlier this year.
MBH is also announcing the establishment of a EUR 50m Medium Term Bond Programme. A portion of this bond will be used for the acquisition of Logistica, in line with its Agglomeration(TM) Strategy. The listing of the new bond was on Monday 8th June on the Irish Stock Exchange, trading as Euronext Dublin. The key terms are as below:
- 5-year maturity rate
- Interest payable semi annually
- Interest rate up to 5%
- Unsecured bond
Unlike a conventional bond issued for raising funds, this MBH bond is intended as full or part consideration for new acquisitions, allowing EPS accretive acquisitions regardless of the prevailing stock price.
The total consideration for the acquisition of Logistica Training is approximately GBP5.8 Million of which the majority is settled by way of a listed bond in accordance with the bond programme with the following terms:
- 5-year maturity with principal payable at maturity; and
- 2% coupon rate per annum payable semi-annually.
This acquisition is expected to be earnings per share ("EPS") accretive.
Callum Laing, CEO, MBH Corporation plc: "We are very excited by this new acquisition and by the bond issue that forms a key part of the deal. Logistica coming on board is an exciting addition to the education vertical and I look forward to welcoming Diane and the team."
Existing synergies with MBH portfolio
Victoria Sylvester, Managing Director of Acacia Training commented: "Logistica Training is a strong addition to MBH, supporting synergies in the education vertical with other businesses in the Group, and widening our UK reach in regulated qualification delivery in health and social care. Logistica Training hold contracts similar to other members of MBH which cover additional regions in the UK and by sharing knowledge, expertise and experience between the companies will support continued Group growth."
Diane Woodhall, Commercial Director of Logistica Training: "Training within the Health and Social Care industry is of such a scale, and growing so rapidly, that we felt the need to join an organisation that would give us the best possible opportunities to capitalise fully on this. MBH is that platform for us, and we can see numerous opportunities to collaborate with the other teams within its education vertical."
 The state of the adult social care sector and workforce in England September 2019, Skills for Care, NMDS Data.
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.
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