9th Apr 2014 09:21
LONDON (Alliance News) - Brammer PLC said revenues were up in the first quarter of the financial year, boosted by its recent Scandinavian acquisition, and it intends to raise roughly GBP53.7 million in a share placing to provide funds to use for bolt-on acquisitions.
The specialist distributor of industrial maintenance, repair and overhaul products said that it intends to place 11.3 million new shares on the market, representing roughly 9.6% of the company's existing issued share capital, at a placing price of 475 pence each, with existing shareholders and new institutional investors.
Brammer shares were up 1.0% Wednesday morning, trading at 489.50 pence per share.
Investec PLC and Peel Hunt Ltd are leading the placing.
Brammer said that it has signed letters of intent with, and is currently evaluating, a number of bolt-on acquisition opportunities across its European markets.
Brammer said it will use the placing proceeds to pursue both these and other acquisition opportunities. It said the proceeds also will be used in the short term to reduce its borrowings.
The group said it expects to have deployed the majority of the proceeds within the next 6 to 12 months.
"The board believes that selective bolt-on acquisitions will complement Brammer's successful organic growth strategy in expanding its geographical markets and extending its product range," the firm said in a statement.
Brammer said that trading in the first quarter were boosted by modest improvements in its markets, with revenues on a sales-per-working-day basis up 5% organically, and 13% when including its recent acquisition of Lönne Holding AS in January.
"Whilst the pace of economic recovery in Europe remains uncertain at this early stage of the year, management's expectations for the full year remain unchanged," the company said.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
InvestecBRAM.L