The total consideration under the share purchase agreement amounts to €7.2 million plus a variable component equal to 30% of the consolidated underlying earnings (EBITDA) of the acquired companies in excess of €1,267,000 for the next three financial years.
Of the consideration, €1,250,000 was paid in cash at closing, and two further cash payments of €1,250,000 will be made on the first and second anniversary of closing. The rest of the consideration will be settled in Challenger shares.
The acquisition was first announced on 26 May, since when Challenger's shares have been suspended, as the investment constitutes a reverse takeover under Aim's listing rules.
"The excellent quality and principled nature of the leadership team at Starneth, coupled with the pipeline of potential projects worldwide, provides a global platform in the attractions sector for Challenger,”said Mark Gustafson, executive chairman of Challenger.
Gustafson said the Challenger management team is looking forward to working with Starneth's chief executive, Chiel Smits, and the rest of the Starneth team “on multiple iconic wheel projects globally, both as the supplier and as an equity owner in select projects."