DGAP-News: MBH Education vertical continues its tactical acquisition strategy with Apprentice Supermarket acquisition

MBH Education vertical continues its tactical acquisition strategy with Apprentice Supermarket acquisition

London, 13 December 2019 - MBH Corporation plc ("MBH"), a diversified investment holding company, is continuing its acquisition strategy, with the fourth tactical acquisition by Acacia Training Limited ("Acacia") in the past 12 months. The asset acquisition of the award winning Apprentice Supermarket allows Acacia to expand the company's expertise and services into pre employment contracts, further strengthening the Education vertical of MBH.

Apprentice Supermarket provide courses for apprentices in the United Kingdom, with services provided for both employers and new candidates. MBH, through its wholly owned subsidiary Acacia, will acquire the business of Apprentice Supermarket which includes the following assets:

• The Apprentice Supermarket trademark;
• The award winning (2) courses designed by Apprentice Supermarket;
• 444 online short courses;
• Website;
• All course related materials; and
• Customer and supplier relationship connections.

The acquisition of Apprentice Supermarket attracts employers and learners onto traineeship and apprenticeship programmes which is in line with Acacia's current service offerings. The acquisition opens discussions with a number of apprenticeship customers referred by Apprentice Supermarket, again providing additional revenue and growth to Acacia's current contracts.

The cost to MBH for this acquisition is £86,000 which will be settled by way of a share issue based on a share price of EUR 1.47. The net profit multiple paid for this acquisition is approximately 2 times the company's 2018 net profit.

Further information on tactical acquisitions

Tactical acquisitions are the acquisition of smaller companies by the main MBH subsidiaries, using MBH shares as consideration. The purpose of these acquisitions is to enhance the main subsidiary service offerings and synergistic opportunities in the industry.

Strategic acquisitions targets are typically £750k EBIT and above. Tactical acquisitions just need to provide value to the subsidiary that acquires them. Because they are managed by the subsidiary, there is no management overhead for MBH.

Since joining MBH Corporation Plc, subsidiary Acacia Training Limited has successfully developed and mobilised a tactical acquisition strategy that is adding value to the business.

Acacia's acquisition journey.

Acacia adopted the MBH Agglomeration(TM) foundations as the basis of their strategy, seeking debt free, profitable businesses driven by leaders with a growth mind-set, high motivation for success and an entrepreneurial approach. This was then built upon by identifying businesses who could potentially add value to Acacia and each other, while at the same time, capitalising on the expertise of Acacia's Principal to support them with their business growth plans and accelerate their progress.

Victoria Sylvester, Principal of Acacia Training, said - "Acacia Training is an established business in the UK education sector, with an experienced, solid board and senior management team. We've spent 18 months developing our senior management team to create a more autonomous environment and develop them to a higher level to grow Acacia and allow the Managing Director to be more outward facing.

Becoming part of MBH has given us the ability to fast track our growth through the acquisition of tactical businesses which wasn't an option as a private entity.

By using a collaborative approach, we can grow these businesses alongside Acacia, thus adding more and more value to the group. Due to their small size, these companies have the potential to grow quickly, benefiting from the experience of an existing business in the group.

With our support the hope is that some of these businesses will grow to a level where they can become independent subsidiaries and contribute even more to the group."

To find out more about the synergistic advantages of the tactical acquisitions within MBHs Education vertical, being ISOBT (International School of Beauty) acquired on Dec 2018, UK Sports Training acquired Oct 2019, KS Training acquired Nov 2019, and Apprentice supermarket Dec 2019, please visit our website link:

www.mbhcorporation.com/tactical-acquisitions

About MBH

MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium enterprises across multiple geographies and sectors that are well established, profitable, debt free and looking to scale. By leveraging the Agglomeration 2.0 strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent, accretive acquisition of excellent companies.

www.mbhcorporation.com

Contacts for IR and media enquiries:

MBH Corporation plc, Charlotte Fordham, [email protected], +44 (0)770 396 3953

Kirchhoff Consult AG, Nicole Schüttforth, [email protected], +49 (0)40 609186 64