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Challenger Acquisitions ready to roll after completing Starneth acquisition

Investment firm Challenger Acquisitions has completed the acquisition of Starneth, a specialist in designing and building Ferris wheels.

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Challenger plans to be a big wheel in the leisure attractions sector

Challenger Acquisitions (LON:CHAL) has completed the acquisition of the main operating businesses of Ferris wheel specialist Starneth.

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." 

Quick facts: Challenger Acquisitions Limited

Price: 0.125 GBX

LSE:CHAL
Market: LSE
Market Cap: £370 k
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