Vitec Group PLC (The) Acquisition of Adeal (9012G)

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RNS Number : 9012G

Vitec Group PLC (The)

07 March 2018

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7 March 2018

The Vitec Group plc

Acquisition of Adeal

Vitec further expands its distribution channel in APAC

The Vitec Group plc ("Vitec" or "the Group"), the international provider of products and solutions for the broadcast and photographic markets, announces that on 6 March 2018 it completed the acquisition of Adeal Pty Ltd, for a total investment of A$5.0 million (GBP2.8 million). The acquisition is expected to be earnings neutral in 2018 and marginally accretive in 2019.

Adeal is a distributor of consumer and professional imaging products and accessories based in Melbourne, Australia, and Vitec's former Imaging Solutions distribution partner in Australia.

The acquisition of Adeal is in line with Vitec's strategy to expand in APAC and get closer to its customers through owning more of its own distribution channel. In addition to sales growth, margin consolidation and full control of channel management, Vitec's ownership of Adeal will enable the Group to consolidate its Imaging Solutions brands under one national distributor.

Adeal will become part of Vitec's Imaging Solutions Division, led by Marco Pezzana. David Burlew, Adeal Managing Director, will remain with the company post acquisition.

Stephen Bird, Group Chief Executive of Vitec, commented:

"This acquisition is a further step in the Group's strategy to get closer to our customers and will build on our presence in the rapidly expanding APAC market. This is an exciting time for Vitec as we continue to launch innovative, new products for the fast growing "image capture and sharing" market, and I am delighted to welcome the Adeal team to the Group."

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Enquiries:

The Vitec Group plc

Stephen Bird, Group Chief Executive

Kath Kearney-Croft, Group Finance Director

Telephone: [phone]

MHP Communications

Tim Rowntree

Ollie Hoare

Telephone: [phone]

A snapshot of The Vitec Group plc

Vitec is a leading global provider of premium branded products and solutions to the fast changing and growing "image capture and sharing" market.

Vitec's customers include broadcasters, independent content creators, photographers and enterprises, and our activities comprise: design, manufacture and distribution of high performance products and solutions including camera supports, camera mounted electronic accessories, robotic camera systems, prompters, LED lights, mobile power, monitors and bags.

We employ around 1,700 people across the world in ten different countries and are organised in three Divisions: Imaging Solutions, Production Solutions and Creative Solutions.

The Vitec Group plc is listed on the London Stock Exchange with 2017 adjusted revenue* of GBP378.1 million.

More information can be found at: www.vitecgroup.com

About Adeal

Founded in 1976, Adeal has been Vitec's Australian distributor since 1990. It distributes nationally from its custom-built, state-of-the-art, automated, Distribution Centre in Melbourne, which houses around 35 staff.

For more information see: www.adeal.com.au/

LEI number: 2138007H5DQ4X8YOCF14

Notes:

* Revenue from continuing and discontinued operations

1. Estimated foreign exchange rate at completion: GBP1 = A$1.78

This information is provided by RNS

The company news service from the London Stock Exchange

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March 07, 2018 02:00 ET (07:00 GMT)