British risk management and settlement solutions provider Brady Plc (LON:BRY) said today it had entered into an agreement to acquire Systems Alternatives International LLC (SAI), a US-based supplier of systems to the metal recycling markets.
As part of the deal, Brady will pay a maximum of USD9.95m (EUR7.8m), comprising a cash portion of USD6.25m on closing and a performance-based earn-out of up to USD3.7m. The additional sum, to be satisfied in cash and stock, will be provided in three tranches after the end of calendar years 2012, 2013 and 2014.
With this acquisition, Brady will secure a leading position in the significant and expanding recycling market while also enhancing its position in the field of metal trading solutions provision, the buyer said. In addition, the move will increase the company’s client base and beef up its brand and commercial foothold in the Americas.
With headquarters in Ohio, SAI recorded a pre-tax profit of USD2m on revenues of USD8.1m last year.