Acquisition of FFEI

RNS Number : 8371E
Xaar PLC
12 July 2021
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.   Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

Xaar plc

 

Acquisition of FFEI

 

Deal to strengthen Xaar's capabilities and support growth strategy

 

 

Xaar plc ("Xaar"), the leading inkjet printing technology group, is pleased to announce it has completed the acquisition of FFEI Limited ("FFEI"), a leading integrator and manufacturer of industrial digital inkjet systems and digital life science technology based in Hemel Hempstead, UK (the "Acquisition").

 

The addition of FFEI strengthens Xaar's capabilities and skills and will help to provide a more comprehensive solution for its growing number of OEM and UDI (User Developer Integrator) customers. The deal will accelerate Xaar's existing growth strategy and will enable Xaar to capture additional opportunities in vertically integrated solutions. This additional capability will enable our customers to reduce their development timescales and shorten their time to market.

 

FFEI has a strong reputation in the industry for being highly innovative and for advanced imaging solutions. The core specialisms are in print systems and printbar manufacturing, which have enabled FFEI to establish several joint development projects with world leading organisations in both digital inkjet and life sciences.

 

In the year to 31 March 2021 FFEI generated revenue of £9.9 million with an operating margin of 9%. FFEI employs in excess of 60 people who will remain with the business. The initial cash consideration of £3.7 million was paid on completion, which reflects existing FFEI free cash reserves, with an additional £5.4 million deferred consideration to be paid out over three years.

 

Whilst the Board expects the Acquisition to be slightly earnings accretive in the first full year of ownership, the acquired expertise and resource will also be utilised for projects that will drive long term profitable growth in Xaar's core printhead business.

 

John Mills, CEO of Xaar, commented "Having restructured and stabilised our core printhead business, the acquisition of FFEI will accelerate our strategy and expand our customer offering in a range of markets. As well as providing a number of ready-made solutions, the acquisition will further enhance Xaar's world class expertise.

 

"I've personally known the FFEI team for many years and have long admired their capabilities having previously worked closely with them. We are very excited to welcome them to Xaar and look forward to integrating the business as we continue to deliver on our strategy."

 

Andy Cook, CEO of FFEI, commented "We are delighted to become part of Xaar which represents a fantastic opportunity for the business to develop and grow. Xaar has been a long-term market leader with great technology and great people and is a perfect fit for the business."

 

 

Enquiries:

Xaar plc

+44 (0)1223 423 663 

John Mills, Chief Executive Officer

Ian Tichias, Chief Financial Officer

 

 



Tulchan Communications

+44 (0)20 7353 4200

James Macey White

Giles Kernick




 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
ACQGPUBUMUPGGRG

Companies

Xaar (XAR)
UK 100

Latest directors dealings