Cleaning supplies company completes £1m acquisition
Hertfordshire cleaning supplies company Zenith Hygiene has completed the acquisition of Leicester based Baker Hygiene & Health Care Supplies for £980k.
£650k is payable in cash and the balance of £330k is to be met by the issue of Zenith shares.
Baker Hygiene was founded in 1989 and supplies cleaning, hygiene and healthcare products mainly to private care homes, with its customers concentrated across the Midlands.
Baker Hygiene’s latest audited accounts to 31st March 2006 show turnover of £3.6 million, operating profits before tax and interest of £100,000 and net assets of £100,000, after net debt of approximately £450,000.
Ringo Francis, chairman and chief executive of Zenith said: “We should reap considerable benefits from the acquisition and most importantly Baker Hygiene will increase by about 300 per cent our penetration into the Care Home market, which industry sources estimate offer revenues in excess of £170 million in the UK.”