Business Weekly - Cambridge, UK

The purchase is conditional on German competition approval and the company acquiring at least a further 55 per cent of the issued share capital through a tender offer to the remaining shareholders. The offer has now been launched and will be open until October 7. 

Vfw is German market leader for reverse logistics in the retail pharmacy sector. The business has a strong track record of profitability with revenue and profits growth over several years. The Tibbett board expects the acquisition to be earnings enhancing in the first year.

For the six months to June 28, Elstree-based Tibbett & Britten boosted turnover by 7 per cent to £791.2 million but operating profit was down to £9.8m from £11.4 million.

Chairman, John Harvey, CBE, said: “The first half-year has seen a gratifying level of both new contracts and renewals, together with a good pipeline of start-ups and developments into 2004. Consequently, the full year’s results will again be weighted towards the second half, reflecting this and the inherent seasonality of our business.

“We expect the North American business to benefit from organic growth in the Canadian retail sector and with US manufacturers. In Europe, we anticipate a continuing UK revival with a widespread level of start-ups across the region. The international operations should benefit from sustained growth in China and the elimination of dual running costs in our South African business.”