MBH Corporation PLC (MBH), a diversified investment holding company, today has announced the latest stage in its growth strategy for 2020 with the acquisition of NVQ Nail & Beauty Specialists Training Academy Ltd (“NVQ”).
NVQ is a specialist in providing a range of beauty training courses with courses accredited by the leading specialist awarding and assessment organisation that develops world-class
vocational and technical qualifications in a range of service sectors, the Vocational Training Charitable Trust (VTCT). This latest expansion of MBH’s growing portfolio consists of a 100% acquisition.
Within MBH’s Education vertical, NVQ will reside under Acacia Training Limited as a tactical acquisition to help further boost their expansion plans, following their first global acquisition of Learning Wings in Singapore in June 2020.
This acquisition is the latest example of MBH acquiring a stable and set business as NVQ has been in operation for 16 years as part of a sector that has seen recent significant growth, with a 45% increase in hairdressing, barbering and beauty shops opening over the last 5 years in the UK.
For the year ending 31 March 2020 NVQ generated revenues of GBP0.3M. The estimated total consideration for the acquisition is approximately GBP0.6m. The consideration will be finalised once the 31 March 2020 audit has been completed. With this acquisition, the pro-forma revenues of the MBH portfolio companies grow to GBP98.5m for the financial year 2020.
Convertible notes will be used to settle the purchase consideration. At the date of conversion, the convertible note will convert into MBH shares at the lower of the 30-day volume weighted price preceding the conversion date (i.e. 12 months post completion date) or EUR0.80c per share.
Victoria Sylvester, Managing Director, Acacia Training Limited said, “NVQ is a fantastic business and we are delighted they will be joining the Group as part of our tactical acquisition strategy. We can see clear opportunities for us to learn from each other as we look to further grow our business footprint within the education sector.”
Callum Laing, CEO of MBH Corporation PLC added, “This is the latest step in the expansion of our education vertical which has long been a big part of our plans as we move forward. The depth of experience and knowledge within NVQ will serve the wider MBH portfolio incredibly well as we continue to collaborate as a group during this extraordinary year.”