MBH Corporation Plc (FRA:M8H) has issued £8.4mln of new five-year bonds to give the group more firepower to finance its ongoing acquisition strategy.
The sterling-denominated bonds, which have an interest coupon of 5% per year and are traded on the Frankfurt Stock Exchange, are part of the group’s €50mln medium-term bond programme.
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Earlier this year MBH used bonds to complete one of its acquisitions.
“By issuing bonds, we can finance the acquisition of small and medium-sized companies independently of the current share price and thus increase the earnings per share of the MBH Group,” said chief executive Callum Laing.
“Following our strong financial performance in 2019, this year to date our completed acquisitions include Learning Wings, Logistica Training, Robinsons Caravans and Samuel Hobson House, with other acquisitions planned over the coming months.”
MBH's acquisitions are part of what Laing calls an ‘agglomeration’ strategy.
Under this approach, as companies join the group, with their private shares converted into public shares in MBH at an agreed multiple, Laing says the company owners are incentivised to accelerate their growth trajectory using the resources of the PLC, including sharing expertise, best practices, cross-selling and sometimes zero-cost funding for new growth projects.