Bolab is a niche automotive power electronics testing products business. Founded in 2012 and based near Stuttgart, Germany, it supplies low-voltage and high-voltage equipment for testing automotive sub-systems and components for conventional, hybrid and electric vehicles.
The acquisition supports the expansion of the Group's capabilities in the Testing Products business and provides further alignment with the structural growth drivers in the sector.
The maximum consideration payable for Bolab is €11.0m (£9.3m), comprising an initial cash consideration of €5.0m (£4.2m) and contingent consideration of up to €6.0m (£5.1m). The Acquisition has been completed on a cash-free, debt-free basis with the initial cash consideration funded from the Group's existing cash resources. Contingent consideration of up to €6.0m (£5.1m) will be payable in cash across two tranches for the two years following completion, subject to meeting certain performance criteria for each year.
Bolab has a good track record of profitable growth. Based on unaudited accounts, in the year ended 31 December 2023, Bolab generated revenue of €3.4m (2022: €2.5m) and operating profit of €0.6m (2022: €0.4m). Net assets at 31 December 2023 were €1.1m.
The Board expects that the Acquisition will be earnings enhancing in FY 2025 with annualised revenue forecast to be approximately €4.0m (£3.2m) and forecast adjusted operating profit of approximately €0.8m (£0.7m).
Bolab is being acquired from its founder, who will remain in the business.