Westminster Group PLC (LON:WSG) has expanded its geographic coverage with the acquisition of French aviation security and support services company, Euro Ops International SRL for an expected maximum cost of £30,000.
The AIM-listed supplier of managed services and technology-based security solutions worldwide said the deal provides it with a French-based subsidiary with increased access to Francophone countries in Africa.
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The firm pointed out that the deal is strategically structured so that it is acquiring a non-trading sister company which provides the benefits of the business activities of Euro Ops Int. without any past incumbrances.
It said the acquired business - which provides services such as Airport Security, Aircrew Management, Operations & Dispatch, and Ground Handling - operates primarily in emerging markets, particularly in Francophone Africa providing humanitarian assignments, and is responsible for sending teams all over the world to assist the UN and NGO's.
Westminster Group noted that Euro Ops Intl. was established in 2002 by managing director, Vincent Toscani who is well respected in the sector and well known to the company as he has provided services to it in the past and who will remain with the business.
It added that the acquisition of a French office will complement its German operation providing the company with a broader European footprint.
The consideration payable for the acquisition is €20,000 to include working capital, Westminster Group said, with Euro Ops Int.'s turnover for the year ended 31 December 2017 approximately €258,000.
Exciting growth potential
The group said: “Euro Ops is a small company, but it provides Westminster with new customers and an additional revenue stream with exciting growth potential whilst Vincent Toscani himself brings additional skills, contacts, and access to contracting manpower to the Group.”
It added that the acquisition costs have been funded from its existing resources.
Peter Fowler, Chief Executive of Westminster Group, commented: ""I am delighted to be able to announce the acquisition of Euro Ops. We have been exploring ways to develop the Francophone market for some time and the acquisition of Euro Ops now provides us with an ideal opportunity to grow our business in such regions, both from Euro Ops existing business activities and also through the expansion of Westminster's airport and managed services business.”
He added: "I am equally delighted that Vincent Toscani will remain with the business. Vincent is a knowledgeable and well-respected operator within the sector and is a valuable addition to our airport security management team and will help drive the business forward."