Acquisition, Keep Able Retail
Third mobility business acquisition solidifies position in retail
Further to the announcement on 2 March 2009, DHAIS Plc, ('DHAIS') a UK leader in the marketing and retail of hearing and mobility products, announces the completion of the acquisition of Keep Able Retail from Keep Able Limited, a national mobility centre company in administration. Keep Able Retail comprised 13 mobility centres across the UK which provided disability aids and mobility products together with home assessment services. Based in the West Midlands, Keep Able Retail also operated a relatively small online store and mail order business.
The acquisition consideration was GBP 220,390 payable in cash of which GBP161,300 was for stock.
Goodwill of GBP 19,090 was included in the acquisition price, and GBP 40,000
paid for fixtures, fittings, equipment and customer records. The funding of this acquisition was by way of existing cash reserves and was undertaken via DHAIS's wholly owned subsidiary Hearing Health and Mobility Ltd.
Keep Able Retail achieved turnover of GBP 2.8 million in the year to 30 September 2008 but suffered a loss of GBP 300k. The Directors believe that following the acquisition, a restructuring programme under the DHAIS formula will rejuvenate the business and return it to profitability.
Moreover, DHAIS is confident that through group integration this acquisition will prove to be earnings enhancing given the anticipated synergies going forward.Mark Moss, Chairman, commented: 'While DHAIS has historically operated as a freelance marketing company, we are of the opinion that our sales lead generating capabilities are well suited to the mobility and health sectors and we are actively expanding in these areas.
'Furthermore, over the past few months we have completed three acquisitions inthe retail health sector and solidified our position firmly with our hearing and mobilitycentres based throughout the UK. We are committed to building a diversified business with our focus on shareholder value.'
30 March 2009
Enquiries: DHAIS Plc 029 2066 6888
Amin Kiddy, Finance Director
Haggie Financial LLP 020 7417 8989
Nicholas Nelson/Kathy Boate
PLUS Advisor: 020 7251 3762
Alfred Henry Corporate Finance Ltd
Jon Isaacs/Nick Michaels
The Directors accept responsibility for this announcement.