Member Article

Hartlepool’s Stadium Group proposes £6.5m Stontronics acquisition

Hartlepool-headquartered technology company Stadium Group Plc has conditionally agreed to acquire Stontronics, a UK based manufacturer and distributor of power supply units, transformers and adaptors, for a total consideration of up to £6.5m to be satisfied in cash.

The acquisition is reportedly in accordance with the company’s strategy of making targeted, complementary acquisitions which strengthen its integrated technology offering, as well as providing synergies and cross-selling opportunities across the business.

Therefore, Stadium believe Stontronics will augment the group’s existing power products capabilities and the enlarged business will strengthen Stadium’s overall technology offering.

Stadium have revealed that the total maximum consideration of £6.5m will be made up of an initial cash consideration of £5.5m and up to £1.0m of deferred consideration in cash, contingent on achievement of future financial targets

Stontronics, founded in 1988, is a private company based in Reading with circa 30 employees. It is a distributor and manufacturer of transformers, adaptors and power supply units, providing a power solution service to its customers.

Charlie Peppiatt, Chief Executive Officer, said: “A clear focus for Stadium is to continue to strengthen and build on the success of our Technology Products division.

“We have been targeting potential acquisitions that bring a clear value proposition; businesses that complement our existing technologies, increase our exposure to high growth markets, and improve our quality of earnings.

“I am pleased to say that Stontronics will deliver all of these, underpinning our ‘one-stop-shop’ integrated technology strategy and it will provide benefits through synergies, cross-selling opportunities and improved economies of scale.”