Acquisition of Straker Films Limited
1 April 2016
Ten Alps Plc
("Ten Alps", the "Company" or the "Group")
Acquisition of Straker Films Limited
Ten Alps, trading as Zinc Media, the TV and multimedia content producer, is pleased to announce the acquisition of the entire share capital of Straker Films Limited ("Straker Films") (the "Acquisition"). The Acquisition will help to further the Group's strategy of becoming a major player in the corporate story-telling market, bringing with it a blue chip client base and an impressive show reel.
Straker Films is an award winning corporate video production business that works with companies and organisations to help them communicate with their customers, staff and the public through moving image.
Straker Films has won industry awards every year for the last 10 years for the quality of its videos, including 11 awards at the 2015 EVCOM (Event and Visual Communication Association) Awards. Founded in 2004 by Nick Straker and Nicola Mann, Straker Films has a client base including Rio Tinto, National Grid, TfL, Aviva, Nationwide and The Department for Education.
Straker Films will be located in Ten Alps' London office, working closely with the existing Ten Alps corporate communications team and the Group's TV production businesses. Nick Straker and Nicola Mann will remain as freelance consultants to Straker Films for a period of time to ensure a smooth transition and handover.
Under the terms of the share purchase agreement ("SPA"), the net initial consideration (defined as initial cash consideration payable less cash assets in Straker Films) is £110,000 to be paid in cash instalments between completion and September 2016. Under the terms of the SPA an element deferred consideration will be payable in cash, equal to a percentage of the revenues of Straker Films in the year following completion (the percentage being 3 per cent. of total sales if the annual revenues are less than £300,000, increasing to a maximum of 10 per cent. of total sales if the annual revenues are greater than £500,000).
In the year ended 29 February 2016 Straker Films generated revenue of £0.64m and a profit before taxation of £0.19m. As at 29 February 2016 net assets were £0.75m. Straker Films currently has one employee, who will continue post completion.
Mark Wood, CEO of Ten Alps, comments: "Ten Alps has already broadened its range of television production through the acquisition of Reef TV and its investment in Chrysalis Vision. The acquisition of Straker Films gives Ten Alps a significant and credible footprint in the corporate video and story-telling market and we look forward to growing our business in this high growth market."
Nick Straker, founder of Straker Films comments: "I am delighted that Straker Films is entering the next phase of its growth in conjunction with Ten Alps. Straker Films has had a long working relationship with Ten Alps and we see the opportunity to become a player of much larger scale in the high growth corporate story-telling market."
For further information please contact:
Ten Alps Plc +44 (0) 20 7878 2311
Mark Wood, CEO
David Galan, CFO
c/o Emer Donohoe
www.zincmedia.com
N+1 Singer (NOMAD to Ten Alps) +44 (0) 20 7496 3000
Shaun Dobson / Lauren Kettle
This information is provided by RNS
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