UK turnaround investor Endless has agreed to buy business supply and outsourced business services company office2office in a £19m deal.
The deal represents a premium of more than 84 per cent to o2o’s closing price on August 20. The company had revenues of about £232m last year, with an underlying pre-tax profit of £4.2m.
Endless said it planned to take advantage of a potential opportunity by combining o2o’s Truline service with the warehouse capability of its portfolio company Vasanta.
Vasanta offers wholesaling and contract stationery through a distribution network based around three highly-automated warehouses, and had revenues of £415m last year.
Endless investment director Mathew Deering said, “We believe that o2o is a business with a number of attractive characteristics which will benefit from the operational expertise and financial support of Endless.
“Furthermore, the merger with Vasanta makes strong strategic and operational sense. It provides an exciting opportunity for the combined group to deliver a strong offering to the market going forward.”
The o2o acquisition is subject to shareholder and court approval, with Endless anticipating relevant meetings would be complete by the end of September.
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