Endless to takeover Norwich’s office2office
Norwich-based business supplies specialist office2office looks set to be bought by turnaround investor Endless.
The deal would see the firm combined with the Vasanta Group, with EVO Business Supplies becoming the holding company of the organisation.
But the takeover is still subject to shareholder and court approval, with meetings planned for the end of September.
Jim Cohen, chairman of office2office, which employs 900 people and has headquarters at St Crispins House on Duke Street, said: 'EVO's recommended cash offer announced represents a significant premium to office2office's current share price and will provide certainty for our shareholders.
'Following a review of strategy, we have considered a number of options for office2office's future and have concluded that combining office2office with Vasanta is the best way of creating value for our shareholders.'
You may also want to watch:
Endless is the majority owner of Vasanta, which offers wholesaling and contract stationery through a distribution network based around three automated warehouses. The Sheffield-based company recorded revenues of £415m in the year ending December 2013.
Endless stated that the new company will be better able to support customers and provide the continued investment in operations needed to maintain a strong wholesaler and contract stationer supply channel.
- 1 Body found in search for missing 87-year-old Margaret Smith
- 2 'I can't carry it' - Shock as plant starts growing eight inches a day
- 3 WATCH: 'Selfish' drug-driver ploughs into police detective's vehicle
- 4 Hundreds of volunteers search for missing 87-year-old Margaret Smith
- 5 Family's distress as Covid rules force double-jabbed mother into isolation
- 6 Norfolk man who had sexual relationship with teen jailed
- 7 Man defrauded more than £1.3m from Norfolk firm to fund gambling addiction
- 8 Son's plea for help as mum, 87, goes missing from care home
- 9 The Range confirms new store at former Outfit on retail park
- 10 Norfolk and Waveney's 30 under 30 - from world-beating athletes to business owners
Mathew Deering, investment director of Endless and EVO Director, said: 'We believe that o2o is a business with a number of attractive characteristics which will benefit from the operational expertise and financial support of Endlesss.
'Furthermore, the merger with Vasanta makes strong strategic and operational sense. It provides an exciting opportunity for the combined group to deliver a strong offering to the market going forward.'
The offer of 51p a share represents a premium of 84.6pc to o2o's closing price of 27.625p on August 20 2014 and values the company's equity at approximately £19m.
In the year ended 31 December 2013, o2o's revenues were £231.9m, with underlying profit before tax of £4.2m.
• Do you have a business story for the Eastern Daily Press? Contact business editor Ben Woods 01603 772426 or firstname.lastname@example.org