1st Nov 2013 08:57
LONDON (Alliance News) - Shipping services company Clarkson PLC Friday bought Gibb Tools Ltd for a maximum of GBP12.7 million in cash and shares, giving its ports and agency business the capability of tendering for larger offshore and renewable energy contracts.
Clarkson is buying the company, which specialises in supplying engineering to North Sea energy companies, from the Clark family and some of its employees. Iain Clark and the employees will remain with the business, it said.
It will pay GBP5.7 million in cash and GBP0.5 million in shares as an initial consideration, while up to GBP1.7 million in cash is payable before April next year. A further GBP3 million in cash is due two years after completion, and up to GBP1.8 million will be paid in February 2016 depending on performance targets being met.
Clarkson estimates the acquisition will boost its pretax profit by GBP2 million a year. The acquired company made a pretax profit of GBP1.8 million in the 12 months to end-March.
"The acquisition allows Clarkson Port Services to further extend its Port and Agency client offer into the important tool supply market, bringing with it a wealth of complementary client relationships and allowing us to tender for larger contracts," Clarkson Chief Executive Andi Case said in a statement.
Clarkson shares were up 2.1% at 2,058 pence early Friday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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