MBH Corporation Plc (ETR:M8H) has completed its 11th acquisition, funded by a newly launched medium-term bond.
MBH, which is based in Singapore and listed in Germany, has expanded its UK portfolio and its education vertical with a deal to buy 100% of Logistica Training for £5.8mln.
The consideration for the acquisition will mostly be made using a portion of the €50mln bond listing, which was launched on Monday on the Irish Stock Exchange.
Logistica delivers face-to-face and online training to the fast-growing health and social care sector, which is fully funded by the European Union via the Educational and Skills Funding Agency and prime contractors.
With Logistica having generated an underlying profit (EBITDA) of £0.8mln on £1.9mln of revenues last year, the deal is expected to be accretive to earnings per share and will take pro-forma revenue of the MBH stable of companies to more than £81mln.
Changing demographics are driving the growing need for care of older people and thus is supporting Logistica’s growth, MBH said.
Diane Woodhall, Logistica’s commercial director, said: “Training within the health and social care industry is of such a scale, and growing so rapidly, that we felt the need to join an organisation that would give us the best possible opportunities to capitalise fully on this.
“MBH is that platform for us, and we can see numerous opportunities to collaborate with the other teams within its education vertical.”
The acquisition adds a third education provider to the MBH portfolio, alongside Acacia Training and the Parenta Group.
Acacia’s Victoria Sylvester said some of Logistica’s contracts are similar to other members of MBH and cover additional regions in the UK — “and by sharing knowledge, expertise and experience between the companies will support continued group growth”.
MBH group CEO Callum Laing said: “We are very excited by this new acquisition and by the bond issue that forms a key part of the deal.”
Unlike a conventional bond issued for raising funds, the MBH bond is intended as full or part consideration for new acquisitions, allowing EPS accretive acquisitions regardless of the prevailing stock price.