12th Aug 2005 07:00
Huntsworth PLC12 August 2005 HUNTSWORTH PLC 12th August 2005 Acquisition of Context Research International Limited and Brand Health International Limited HUNTSWORTH STRENGTHENS POSITION IN INTERNATIONAL AND UK INTEGRATED HEALTHCARE MARKET RESEARCH Introduction Huntsworth PLC ("Huntsworth"), the international public relations group,announced today that it has agreed to acquire the entire issued share capital ofContext Research International Limited ("Context"), an international and UKqualitative market research agency business based in Harpenden, and Brand HealthInternational Limited ("BHI"), a business recently launched to deliver onlinequantitative surveys amongst healthcare professionals. Both businessesspecialise in the pharmaceutical sector, and will operate under the 'HuntsworthHealth' brand, strengthening further the growing healthcare practice withinHuntsworth. The initial consideration for Context will be £3,018,258. £1,796,629 is to bepaid in cash and the balance (£1,221,629) is to be satisfied by the issue of newordinary shares. Deferred consideration may comprise a supplementary payment in2006 and a final consideration payment based on growth in Context's averageprofits for the three years ending 31st August 2008. Total deferredconsideration, up to an approximate maximum of £3,556,700, may be payable, inthe form of cash or shares at Huntsworth's option. The initial consideration forBHI will be £32,970 satisfied in cash. Deferred consideration up to anapproximate maximum of £5 million may be payable, in cash or shares atHuntsworth's option, based on BHI's average profits for the four years to 31stAugust 2009. David Rowley, Chief Executive of Huntsworth Health said: "The acquisition ofboth Context and BHI further strengthens our healthcare market researchcapability, which when merged with our current healthcare research business RootResearch, will provide a formidable research platform at a global level. Theseacquisitions support our stated strategy of building a global integratedhealthcare business." Context and BHI Context was formed in 1986 and has seen significant growth over the lastfinancial year. Context's client base includes several leading globalpharmaceutical companies. The company will join the Huntsworth Health divisionand will continue under the direction of its existing management team, led byMike Owen and Jon Chandler. In the year ended 31st December 2004, Context had aturnover of £2,918,055 and profit before tax of £397,591. Net assets at 31stDecember 2004 were £451,777. Peter Winters along with Mike Owen and Jon Chandler formed BHI in 2004 andcomprise the existing management team. Net assets for BHI at 31st July amountedto £32,970. BHI will join the Huntsworth Health division under the direction ofthe existing management team. David Rowley and James Bell, Finance Director ofHuntsworth Health, will join both Context and BHI's boards. Under terms of the UKLA listing rules, the Context acquisition is a Class 2transaction not requiring shareholder approval. Application to the UK ListingAuthority and to the London Stock Exchange is being made today for the admissionof these shares to trading on the Official List of the London Stock Exchange.Dealings are expected to commence on 19th August 2005. Enquiries: Roger Selman, Finance Director, Huntsworth PLC (020) 7408 2232David Rowley, Chief Executive, Huntsworth Health (01628) 483196 - Ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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