Dewhurst to acquire remaining 25pc of P&R Liftcars

Lift, transport and keypad components specialist Dewhurst Group announced its intention to acquire the remaining 25% stake in P&R Liftcars on Wednesday.

The AIM-traded company said P&R, based in Australia, specialises in the design, manufacture and installation of lift car interiors and door frame cladding.

In 2017, Dewhurst acquired 75% of P&R Liftcars from Roy Peat and Peter Hosey for AUD 1.54m (£0.8m), plus additional considerations.

Following the initial acquisition, Dewhurst said P&R Liftcars had proven to be a valuable asset, delivering significant returns to shareholders.

Despite challenges posed by the pandemic, P&R Liftcars reported a profit after tax of AUD 0.16m for the year ended 30 September 2023.

However, net assets decreased to AUD 5.7m, due to reduced capital projects during the pandemic.

A clause in the original shareholders' deed granted the seller, Roy Peat, a put option, allowing him to sell his remaining interest in P&R Liftcars to Dewhurst at a predetermined multiple of P&R Liftcars' EBIT.

The terms of that put option were amended in March 2020, adjusting the multiple to 2.5x the average of P&R Liftcars' best three financial years' EBIT.

As Roy Peat was a director of P&R Liftcars, a subsidiary of Dewhurst, the amended put option constituted a related party transaction.

The recent exercise of the option triggered Dewhurst's acquisition of the remaining 25% stake in P&R Liftcars for AUD 2.9m in cash.

Dewhurst said Roy Peat would continue to serve in a full-time capacity at P&R Liftcars until at least September, to ensure a smooth transition.

The board said the transaction was expected to be immediately earnings enhancing for Dewhurst shareholders.

At 1102 GMT, shares in Dewhurst Group were up 4.89% at 944p.

Reporting by Josh White for Sharecast.com.