Acquisition

6th Feb 2008 07:00

Fenner PLC06 February 2008 6 February 2008 Fenner PLC ("Fenner") Fenner Acquires Prodesco, Inc ("Prodesco") Fenner is pleased to announce that it has acquired 100% of the share capital ofProdesco from the shareholders, the substantial majority of whom are representedby the Trustees of certain trusts created for the benefit of T.Nash Broaddus andRobert J Sievers and the members of their respective families. Prodesco consists of two businesses; the first develops and manufactures a rangeof highly specialised technical fabrics which are used in various performance-critical and proprietary applications by industrial, aerospace and chemical equipment OEMs. Prodesco's second business, Secant Medical is a leader in the development andproduction of textile structures for the growing medical device market.Typically, Secant Medical's products are critical components in devices whichare used to treat cardiovascular and orthopaedic conditions. Gross assets valued at $14.7 million on 29th September 2007 (after adjustmentfor assets excluded from the sale) were acquired for an initial cashconsideration of $47 million. Additional cash consideration will be paidconditional upon Prodesco meeting certain agreed revenue projections over fiveyears. The conditional consideration is capped at $18 million. Prodesco,together with Secant Medical, earned pro-forma profits before tax of $7.4million in 2007. The transaction is expected to be earnings enhancingimmediately upon acquisition. Prodesco and Secant Medical will continue to operate under their current namesand will together operate within Fenner's Advanced Engineered Products (AEP)Division. Steve Chadwick, President and Chief Executive Officer, and TomDertouzos, Chief Financial Officer, will continue to lead Prodesco's strongmanagement group under the direction of Fenner's AEP team. Prodesco and Secantwill continue to operate from their existing facilities in Perkasie, Pennsylvania, USA. Mark Abrahams, CEO of Fenner PLC said, "Prodesco is a great company which buildson Fenner's core expertise in textile engineering while exemplifying our AEPDivision's primary focus on performance-critical, polymeric components. SecantMedical is a natural extension to Fenner's business and gives it exposure to asegment of the medical market which has attractive growth and resiliencecharacteristics". Fenner is a world leader in the field of reinforced polymer engineering. Itsproducts include lightweight and heavyweight conveyor belting for the mining andpower generation markets, precision motion control products for the officeautomation and mechanical equipment markets, and sealing products for themining, hydraulics and energy industries. -Ends- For further information please contact: Fenner PLCMark Abrahams, Chief Executive 01482 626501Richard Perry, Finance Director Weber Shandwick FinancialNick Oborne/ Stephanie Badjonat 020 7067 0700 This information is provided by RNS The company news service from the London Stock Exchange

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