Acquisition builds on ambitions to grow the number of North American companies in MBH whilst strengthening the Group's Engineering vertical and adding a further GBP0.5m in revenue and GBP0.1m in EBIT.
LONDON, UK / ACCESSWIRE / February 24, 2022 / MBH Corporation plc (MBH), a diversified investment holding company, has today announced it has agreed to the terms for the acquisition of BEP Engineering Services, based in British Columbia, Canada. As the latest acquisition as part of its growth plans and subject to regulatory approval, BEP Engineering Services will become an integral part of MBH's Engineering Vertical.
With this acquisition the MBH portfolio now stands at 28 companies across 8 industry sectors and 6 countries. This is MBH's first acquisition in Canada.
BEP Engineering Services is a general contractor of mill engineering and industrial design based in British Columbia, Canada. Established 41 years ago in 1981, the company has expanded into a successful multi-disciplined mill engineering firm that is dedicated to bringing high quality designs and plant modifications to a discerning client base. Services include providing design, detailing and certification services, which covers the creation of new operations and the upgrading and modification of existing plants.
BEP Engineering partners with organisations in the sawmill, re-man, plywood, planermill, veneer and shake producing industries, while also providing engineer certification services which covers mechanical, civil/structural, electrical, dust collection and geotechnical areas. The company has been supplying and installing high quality pre-engineered metal buildings and tension fabric buildings for clients by designing building layouts to cover mechanical equipment in its most efficient flow arrangement.
BEP's unaudited revenue for the full year ended 30 November 2021 is approximately GBP0.5m. The total consideration for the acquisition of BEP will be approximately GBP0.5m to GBP0.7m which will be settled by way of convertible notes which will convert at the one year anniversary from completion date into MBH shares at the lower of the 30 day volume weighted price preceding the conversion date or EUR0.35c per share.
Bernie Pahlke, CEO, BEP Engineering commented: "The opportunity for us to become part of an international group brings with it new possibilities and a high-level of excitement within our skilled team. Over the years we have built our reputation on quality and market leading services and we're confident that becoming part of MBH will allow us to take our service offering and reach to even greater levels.
Callum Laing, CEO, MBH Corporation Plc, said: "The Board of MBH and our Principals are very pleased to welcome BEP Engineering Services to the Group, with their intricate knowledge of mill engineering & industrial design in North America. With more than four decades of experience, Bernie Pahlke and his team also have a great network of other businesses that could be a good fit with MBH in the future."
Bond Programme and Number of Shares on Issue
MBH has utilised approximately EUR34m of its bond programme leaving a balance of EUR16m to be utilised if required.
The number of shares issued at the date of this release is 100.3 million. Approximately 65% of MBH shares are owned by the Principals in the Group. To further support the company, several of the Group Principals are engaged in repeat monthly purchases of shares on-market for themselves or part of employee share ownership programs.
About BEP Engineering Services
Established in 1981 in Surrey, British Columbia, Canada, BEP Engineering Services is a general contractor of mill engineering and industrial design. The company provides design, detailing and certification services for new operations as well as the upgrading and modification of existing plants. BEP provides a full range of mechanical/mill, civil/structural and electrical engineering services, with expertise encompassing sawmill, re-man, plywood, planermill, veneer projects and power plants. The company also has the ability to provide related electrical and control services.
www.bepengineering.com
About MBH
MBH Corporation plc (M8H:GR) is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges and the OTCQX in New York (MBHCF). The company acquires small to medium enterprises across multiple geographies and sectors that are well established, profitable and looking to scale. By leveraging the Agglomeration strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent and accretive acquisition of excellent companies.
www.mbhcorporation.com
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MBH Corporation PLC, Charlotte Williams, charlotte@unity-group.com , +44 (0) 770 396 3953
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SOURCE: MBH Corporation Plc
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