Brulines to buy rival
Brulines has announced it is to buy rival cellar volume monitoring company Nucleus Data for £3,800,000.
A further consideration of up to £700,000 in loan notes may be payable depending on performance of the two businesses' brand quality monitoring products in the licensed on-trade in the period to 31 March 2009.
Completion is conditional on the Office of Fair Trading making a decision not to refer the proposed merger. Assuming no such reference is made it is anticipated that completion of the acquisition will take place in November 2007.
Established in 2000 and based in Tadcaster, North Yorkshire, Nucleus supplies data capture devices, communication platforms, data management, service and maintenance, and market intelligence services to the UK licensed on-trade.
In the year ended 31 December 2006, Nucleus made a profit on ordinary activities before taxation of £302,000 on a turnover of £3,103,000.
Post acquisition the businesses of Brulines Limited and Nucleus Data Limited will be fully merged.
The two current executive directors of Nucleus Data Limited, Jeff Anspach and Clive Consterdine, will be appointed directors of Brulines Limited in senior commercial roles that will have a significant influence on the success and direction of Brulines' product portfolio. The two Nucleus non-executive directors, Jim Walsh - the founder and majority shareholder - and James Crawfurd-Porter are not involved in the executive management of Nucleus and will resign on completion.
Brulines chief executive James Dickson said: "Not only will the merged business be able to pool resources, thereby accelerating technology development, but it will also deliver significant benefits across the whole on-trade supply chain; from reduced operational complexity for Pubcos to improved service delivery and return on investment for bar operators.
"The acquisition of Nucleus will undoubtedly produce enhanced earnings next year, and it is an important strategic development in Brulines' growth plans as it enhances product development, further strengthens our senior team and provides a solid commercial platform from which to accelerate our entry into new markets."
Jim Walsh, director and founder of Nucleus Data Holdings Limited, added: "There is a great natural fit between Nucleus and Brulines in terms of people, vision, independence, values and the need for business integrity, not to mention the significant benefits to our shared customers. The merged business has an exciting future as it develops its presence in a rapidly changing hospitality market here in the UK and overseas."
