Bike and leisure products group Tandem has expanded its portfolio again with the acquisition of ESC (Europe).
The Castle Bromwich-based manufacturer has bought the entire share capital of Sudbury-based ESC for an initial fee of £2.1 million.
Additional consideration is likely to be approximately £550,000, but up to a maximum of £750,000, payable over the next year and subject to ESC fulfilling certain profitability criteria.
ESC is an online retailer of gazebos, party tents, household, kitchen and fishing products under the Airwave, Windbar, Jack Stonehouse and Carpzone brands.
It made a profit of £400,000 in the year to November 2013 and net assets are expected to be approximately £1.7 million on completion.
Jonathan and Mark Fagg, the directors and existing joint shareholders of the ESC, will continue as directors of the company.
Last year, Tandem bought mobility products firm Pro Rider in a deal worth up to £3 million.
Alongside its core bike brands including Claud Butler and Dawes, Tandem Group sells wheeled toys and equipment for snooker and pool, football, golf and outdoor play.
Listed Tandem Group said in statement to the stock exchange: "The board believes ESC will complement the group's existing e-commerce business, Pro Rider, and broaden the online product range.
"The acquisition is expected to be earnings enhancing for the company in its first full year of ownership and will further strengthen the group's distribution channels and its customer base through continued development and growth of the business.
"ESC will continue on a stand-alone basis but is expected to be integrated into the group's existing Northampton premises by early 2016."
Tandem's chairman Mervyn Keene added: "We are pleased we have made this acquisition which will enable us to build further on our online trading platforms.
"Many of the products in the ESC portfolio complement our existing sports and leisure ranges and we look forward to the prospect of further growth."
