11th Mar 2014 12:34
LONDON (Alliance News) - Energy and mining support services company Cape PLC Tuesday said it has bought tank storage specialist Motherwell Bridge For GBP37.65 million, a move that will broaden its service offering and gives it the potential to expand the Scottish company's overseas sales.
In a statement, Cape said it will pay an initial cash consideration of GBP34.0 million, take on debt of GBP0.9 million, make a deferred payment of GBP1.25 million contingent on a key contract win, and up to GBP1.5 million in payments related to future performance.
It said it expects the deal, which is on a debt- and cash-free basis and will be funded from Cape's existing debt facilities, to add to its earnings from this year.
Motherwell Bridge makes storage tanks, gas holders and heat exchangers for the energy and steel markets. It employs about 300 people, mainly in the UK, and made earnings before interest, tax, depreciation and amortisation of GBP4.8 million on revenues of GBP34.6 million in 2012.
"Motherwell Bridge has tremendous expertise, reputation and brand recognition in the oil and gas storage tank market, including a market leading position in the UK and we expect to accelerate Motherwell Bridge overseas growth through Cape's international footprint," Cape Chief Executive Joe Oatley said in a statement.
Cape shares were up 5.8% at 317.25 pence Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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