The total consideration payable for ScrapRunner is USD 2 million payable as to USD 1.8million in cash on completion, USD 100,000 in cash one year after completion and USD 100,000 in cash two years after completion subject to any amounts that may become payable to Brady under the indemnifications. This consideration includes working capital of USD 200,000, which will be adjusted by a completion accounts verification process. The acquisition is expected to be earnings enhancing in 2015.
ScrapRunner’s unaudited draft accounts for the year ended 31 December 2014 show revenues of USD 2 million, 62 per cent of which are recurring, generating a profit before tax of USD 694,000. As at 4 September 2015 unaudited net assets were approximately USD 157,000.
The ScrapRunner solution manages complex container pickup and delivery scheduling, tracks the location of containers as well as tracking and reporting on the activity and location of trucks using Global Position System (GPS) tracking. These abilities will broaden Brady Recycling’s product offering and it is anticipated that it will facilitate further growth. ScrapRunner has over 70 clients today and drivers using 1,943 handheld applications with fleet sizes ranging from 1 to 500 trucks.