22nd Jun 2007 07:01
Cape PLC22 June 2007 Cape PLC ("Cape" or the "Company") Acquisition of Endecon Limited Cape PLC (AIM:CIU), the international provider of essential support services forthe energy sector, announces the acquisition of Endecon Limited ("Endecon"). The consideration for the acquisition comprises an initial £2.0 million whichhas been paid as to £1.75 million in cash on completion. Provided that Endeconachieves a specified minimum level of EBITDA, the balance is payable, subject toany claims that may be made, in cash on the anniversary of completion. Furtherconsideration will be payable over the two years following completion dependingon the performance of certain technology acquired with Endecon which is brieflydescribed below. Endecon provides environmentally safe systems to decontaminate oil refinery andpetrochemical systems removing benzene, H2S (hydrogen sulphide) and pyrophorics,and minimising heavy, oily sludges and deposits in order to provide significantsafety and productivity benefits at plant shutdowns. Endecon also applies itstechnology to chemically clean processing units in chemical and other heavyindustries, removing scale deposits and corrosion formation, as well asproviding heat exchanger bundle pulling services to oil refineries andpetrochemical plants using robotic, hydraulic equipment. Based in Wrexham, Endecon is an innovative company employing a team ofexperienced professionals offering an effective alternative to environmentallyunfriendly chemicals or prolonged steam cleaning. Endecon's customised approachcombines mechanical engineering capability and biodegradable chemistry. In addition to these services, Endecon has acquired exclusive rights in the UKto high pressure membrane press technology which is capable of separating oilywaste into recoverable fuel oil and dry friable solid or cake acceptable onlandfill sites under the new Landfill Directive which came into force in July2004. Under Cape's ownership it is intended to introduce market leadingsecondary processing services during 2007 to reduce waste even further. In the year to 31 July 2007, Endecon's turnover and earnings before interest andtax are expected to be £2.3 million and £230,000 respectively. The approximatevalue of the gross assets acquired at completion is £530,000. Cape's Chief Executive Martin May commented: "Endecon is a natural fit with Cape's specialist industrial cleaning business, DBI Group, acquired by Cape in October 2006. Endecon has exclusive rights to use industry leading technology which is already proving of great interest to the oil refineries on which Endecon, DBI and Cape all work. The acquisition of Endecon marks another significant step in Cape's development of a comprehensive package of industrial cleaning services to oil refineries and other industrial installations." ENDS For further information, please contact: Cape PLCMartin May, Chief Executive +44 (0)1924 876 276 Bell Pottinger Corporate & FinancialNick Lambert +44 (0)7811 358 764 Notes to editors • Cape PLC is the parent company of a number of service providing organizations operating primarily in the oil and gas, petrochemical and power generation industries • In the year to 31 December 2006, Cape reported turnover of £295.5 million • Cape currently employs c. 8,200 people in 23 countries worldwide • Cape specialises in the provision of scaffolding, insulation, fire protection, specialist cleaning and other essential services to major industrial clients in the energy sector • Cape's ability to provide specialist cleaning services was enhanced by the acquisition of DBI Group Limited in October 2006 • On 24 April 2007, Cape completed a placing, of 26,923,077 ordinary shares at £2.60 per share to raise approximately £70m before expenses • On 6 June 2007, Cape announced the acquisition of Total Rope Access International Limited. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CIU.L