Smiths News buys news trade software supplier
Magazine and newspaper distributor Smiths News has bought a 50% stake in inventory management solutions provider Rascal Solutions.
Smiths is paying £3m in cash to Retail & Mailing Solutions LLP for a stake in Rascal, which provides inventory management solutions to major retailers in the magazines and newspapers trade. Two-thirds of the cash consideration will be paid up-front with the remaining £1m due on 30 October 2008.
As at 31 May 2007, Rascal had gross assets of £1.5m. In the year to end-May 2007 it made a pre-tax profit of £0.2m.
Smiths said it has entered into a shareholders’ agreement with the owner of the other half of Rascal, KEM Investments, over the continued operations of Rascal.
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Peter Kemble, a member of KEM Investments, will continue as managing director of Rascal Solutions.
“'Rascal Solutions has successfully established itself in the provision of in-store news product solutions for retailers with its innovative approach and software products,” said Mark Cashmore, chief executive of Smiths News.
“Investing in this business is consistent with our overall strategy of improving the service available to retailers and reducing waste in the supply chain,” Cashmore said.
