11th Jan 2006 07:00
Delling Group PLC11 January 2006 For Release 7:00 am 11 January 2006 DELLING GROUP PLC The AIM-listed marketing services group £1.6 million Acquisition in Sweden Delling Group PLC ("Delling Group"), the AIM listed marketing support servicesgroup, announces that in line with its acquisition strategy, it has exchangedcontracts to acquire n3prenor, a private Swedish document production company.The total consideration payable of £1.6 million is equivalent to approximately 4times n3prenor's pre-tax profit for the year ended 30 June 2005. The acquisition, which is due to complete on 1 March 2006, will be satisfied bya cash payment of £1.2million funded by a bank loan from a Scandinavian bank. Afurther £115,000 shall be paid through an issue of Delling shares based on theaverage Delling share price during the month of June 2006. In addition, anearn-out of £300,000 shall be paid in cash if the total profit of n3prenorduring the first half of 2006 exceeds £600,000. n3prenor is a privately owned Swedish business and for the year ended 30 June2005 had a turnover of £2 million and a pre-tax profit of £400,000. Over thepast 5 years n3prenor has consistently had sales over £1.5million and netmargins of at least 20%. n3prenor is a leading niche player involved in theproduction of annual reports and other corporate documents particularly forlarge listed companies in Sweden. The acquired business has an impressivelystrong customer base, which includes Swedish listed companies and householdnames such as Nordea, Posten (the Swedish Post Office), OhrlingsPricewaterhouseCoopers, NCC, Enskilda Securities and Assa Abloy. The Board ofDelling believes that there are substantial cross-marketing opportunities andexcellent potential for Delling to exploit n3prenor's customer base. Commenting on the acquisition, Aksel Bratvedt, Executive Chairman of DellingGroup, said:"This acquisition represents an excellent platform in support of Delling Group'sstrategic model for strong growth, whilst also exploiting increasing corporatedemand for fully serviced outsourced marketing. I am confident that our growingacquisition pipeline will lead to both further acquisitions of varying sizes inthe coming months and our continued profitable development." For further information please contact: ENDS Contact:Delling Group PlcAksel Bratvedt, Chairman Tel: 020 7484 5663James Robinson, Finance Director Tel: 020 7484 5664 Binns & Co PR LtdTarquin Edwards/Peter Binns Tel: 020 7786 9600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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