Ceps (AIM:CEPS) said its 75%-owned subsidiary, Aford Awards Group Holdings, has acquired Primary Teaching Services in a deal it describes as a value-adding bolt-on.
The deal sees Ceps pay up to £4.59m, including £3.016m in cash on completion, along with the provision of debt and equity facilities and up to £600,000 of deferred performance linked future payments.
Based in East Yorkshire, Primary Teaching Services makes educational motivational products and classroom resources, including stickers, stampers, badges, certificates, merit charts and learning aids used by primary schools across the UK, and was established in 1995.
The company reported unaudited revenue of £4.4m and unaudited pre-tax profit of £594,200 for the year ended 28 February, with unaudited net assets of £1.46m at that date; the board estimates adjusted "normalised" EBITDA of approximately £810,000 for the same period once non-continuing costs are removed following completion.
Aford Awards will hold 90% of the new company's issued share capital, with the remaining 10% held by the management team.
"This bolt-on acquisition aligns with CEPS' value creation strategy for shareholders," said chairman David Horner.