- APC Technology Group completed the acquisition of Euro-Tech, a distributor and international reseller of electronic components for £1.05m.

Euro-Tech sourced and supplied a wide range of active, passive and electromechanical components, industrial products and consumables from major global manufacturers and quality assured sources across Europe to blue chip OEM and CEM customers around the world.

The deal would be complementary to APC's Locator business and 'significantly' enhance APC's capability in the sourcing of hard to find or obsolete and end of life components, products and systems, the company said.

The deal would also provide APC with opportunities to sell its UK business into a broader customer base and provide its other international franchises with opportunities in a wider global marketplace, the company added.

Euro-Tech's profitability was expected to increase following integration into the group's business with the realisation of potential efficiency and revenue synergies, APC said. For the 12-month period ended 30 April 2019, Euro-Tech's unaudited results would record revenues of £2.2m, gross profit of £0.75m, an adjusted earnings (EBITDA) of £0.2m, a profit after tax of £0.1m and net assets of c£0.6m.

Under the terms of the deal, APC would pay £1.05m of which £0.165m represented cash at completion in Euro-Tech and £0.14m derived from excess working capital. '50% of the purchase consideration is payable on completion, 25% in monthly instalments over twelve months and 25% twelve months after completion,' the company said.

At 8:03am: [LON:APC] APC Technology Group PLC share price was +0.25p at 9.75p

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