News: Kresta Holdings to acquire security screens manufacturer and retailer

Kresta Holdings (ASX:KRS) has entered into a conditional agreement to acquire Franklyn Blinds Awnings Security, which is expected to be earnings per share accretive, for $10 million in cash.

The company will also pay for the value of the stock held by Franklyn Blinds which will be determined at completion.

Franklyn Blinds is a leading manufacturer and retailer of blinds, shutters, awnings and security screens in the Brisbane and South East Queensland area.
   
It was founded in 1987 and should increase Kresta’s turnover by about 30%.

The Franklyn brand will continue and it provide Kresta with a stronger footprint and greater market share in Queensland.

Its acquisition will also provide opportunities for buying synergies and an East Coast production capability as well as diversification of Kresta’s revenue into the securities screens market in which the company does not compete.

The acquisition is subject to conditions, including Kresta obtaining the requisite financing for the purchase price, consents from counterparties to Franklyn Blinds' key contracts, senior executives entering into employment contracts and any regulatory approvals.

Kresta generated a positive cash flow of $2.4 million and revenue of $95.6 million. The company had cash of $5.7 million as at 30th June 2014.