Dewhurst to buy Australia's P&R Liftcars for AU$1.54m

1st Feb 2017 08:30

(ShareCast News) - Dewhurst, a supplier of components to the lift, keypad and transport industries, is to buy a 75% stake in Australian lift car manufacturer P&R Liftcars for up to AU$1.73m in order to expand its service in the country.The AIM-lsited company will pay AU$1.54m for the stake and AU$190,000 on completion for 75% of the inventory less employee liabilities.As part of the deal Dewhurst will hold the right of first refusal to buy the remaining 25% stake in the business.In the year ended 30 June 2015, P&R Liftcars generated pre-tax profit of AU$1m, excluding employment costs, on turnover of about AU$4.7m.Brad Newell, general manager of Dewhurst's Australian lift components business, said: "As Australia's largest designer and manufacturer of high quality lift fixtures, this acquisition provides an exciting opportunity for the Australian lift components business to expand its services to the Australian lift industry and will provide customers a single point of contact for lift fixtures and interiors."The acquisition is in line with our strategy of providing a broad range of high quality manufactured products and services to the lift industry and will be earnings enhancing for Dewhurst."P&R Liftcars was founded by Roy Peat and Peter Hosey 32 years ago. Peat will retain a 25% stake in the business and will continue in his role as general manager, while Hosey will retire but will remain with the business for a short period to ensure a smooth transition.Shares in Dewhurst were down 2.28% to 601p at 1256 GMT.