IVE acquires Active Display Group and AFI Branding

IVE Group Limited (IVE) are expanding their retail display and 3PL offer by acquiring Active Display Group (ADG) and AFI Branding Solutions (AFI).

They have signed a binding agreement to acquire 100% of the companies.

The agreements are subject to satisfactory customary conditions and should be completed by the end of October 2021. The acquisitions are to be funded through IVE’s existing cash reserves.

The total purchase consideration for both ADG and AFI is $6.5m, $5.2m to be paid on completion, with $1.3m of the total payable deferred based on the agreed achievement revenue targets over 24 months.

The acquisitions are expected to contribute annual revenue of about $45m and additional EBITDA of $6.5m and NPAT of $4m, equating to 2.8 cents per share after fully integrating IVE’s existing operations. The integration will commence, for both businesses, in November 2021 and be completed by June 20, 2022.

IVE CEO Matt Aitken said ‘building further on the strong growth over the last 5 years of our existing retail display operations in both NSW and Victoria, these acquisitions further strengthen our offering as the leader in the design and production of temporary, semi-permanent and permanent retail display solutions to leading Australian and global brands.

ADG’s 3PL division is also a seamless fit for IVE’s already extensive logistics and fulfillment operations across NSW and Victoria.

Both acquisitions continue the ongoing growth in diversifying our revenue streams ad reaffirm the opportunities that present to identify earnings accretive acquisitions as recently foreshadowed at the time of our full year results in August of this year’.