1 May 2014 – acquisition
The group has acquired The Health Hive Group, a strategic consultancy and communications group, for £20.9m which will be satisfied by a combination of cash and new shares in St Ives. Hive generated adjusted EBITDA of £2.9m in the year to 31 December 2013, up from £1.1m the year before. It is clearly a rapidly expanding business and up to a further £29.1m may be payable depending on Hive’s performance over the next three years. The acquisition is expected to be earnings enhancing immediately and is part of the group’s strategy of creating a complementary range of marketing services. Despite the strong rise in the company’s share price over recent months, the shares still do not look expensive – continue to BUY.