Clipper Logistics acquires profitable Repairtech

Clipper Logistics has acquired RepairTech Limited for £3m cash, which it said would immediately enhance earnings.

RepairTech, a Warwickshire-based specialist provider of consumer electronic repair services, reported underlying earnings before interest and tax of £644,000 on revenues of £3.2m in its unaudited financial statements to March 2017.

Steve Parkin, executive chairman of Clipper, described RepairTech as a "robustly profitable and cash generative business".

Clipper will pay £2.5m up front in cash, with a further £0.5m deferred for 12 months, all of which will be funded from Clipper's existing cash and bank facilities.

RepairTech provides its service to retailers and manufacturers who seek to protect margins and minimise working capitals.

Founder Richard Costello and all members of senior management will remain with the business, "to deliver significant organic growth both in its own right, and across the wider Clipper customer base":

Said Parkin: "The acquisition will enable us to offer existing and prospective customers of both RepairTech and the Group a truly comprehensive range of returns management services. We welcome the employees and management team of RepairTech to the Clipper group, and look forward to continuing to build the breadth and depth of our services and customer base."