8th Jun 2006 07:02
Spice Holdings PLC08 June 2006 8 June 2006 SPICE HOLDINGS PLC ACQUISITION OF BREVAL TECHNICAL SERVICES LIMITED IN COMMERCIAL SERVICES DIVISION Spice Holdings plc ("Spice" or the "Group") is pleased to announce theacquisition of Breval Technical Services Limited (and its subsidiary, BrevalEnvironmental Limited) (together "Breval") for a total consideration of £8.35million paid in cash at completion. The consideration is subject to adjustmentbased on the net assets at completion but with an overall cap on considerationof £8.66 million. In addition, Spice will acquire the cash balances in Breval'sbalance sheet on a pound for pound basis. Breval will form part of Spice's Commercial Services Division, which alsoincludes Circle Britannia and Serviceline. Breval is based in Glasgow and specialises in the design, installation andmaintenance of heating, ventilation and air-conditioning ("HVAC") services for arange of commercial, industrial and public sector customers. In addition, itprovides asbestos removal services. Breval's customer base is spread across theUnited Kingdom. Breval was established in 1977 by John S MacMillan and is wholly owned by him.Following completion, he will be retiring from the business but will be retainedon a consultancy basis. Two other family members, John G MacMillan and AnnaMacMillan will remain as directors of the business. John G MacMillan has workedwithin the business for 11 years and will continue as Managing Director. Thetwo other Directors of Breval will also remain with the business as Directors. The consolidated audited accounts of Breval for the year ended 31 March 2006show turnover of £5.6 million and operating profits of £1.3 million. Net assetsof Breval at 31 March 2006 were £2.4 million (including cash balances). Theconsideration of £8.35 million payable at completion represents a multiple ofoperating profits of 6.2 times. Simon Rigby, Chief Executive of Spice Holdings, said: "Spice has been seeking to gain presence in the HVAC maintenance market forseveral years. The acquisition of Breval brings to the Group a high level oftechnical skills in activities which we are confident will play a key part inthe growth of our Commercial Services Division. We see tremendous opportunitiesto sell HVAC services to our existing client base within Commercial Services. As part of our growing activities in energy management, we see the efficientinstallation and maintenance of these systems as a key part of our futureservice offering. Additionally, we believe there are considerable opportunitiesto provide asbestos removal services to our utility clients. We are particularlydelighted that four of the directors of Breval will be joining us and lookforward to seeing the business grow and develop as part of Spice. We are alsopleased to be extending our presence in Scotland." John G MacMillan, Managing Director of Breval, said: "I am delighted to see Breval become part of the Spice group. I believe thatthe employees and directors will be able to continue to grow the business aspart of a larger group, with all the opportunities that provides." - Ends - For further information, please contact: Spice Holdings plc Tel: 0113 384 3838Simon Rigby, Chief Executive Officer Oliver Lightowlers, Group Finance DirectorCarl Chambers, Corporate Development Director Financial Dynamics Limited Tel: 020 7831 3113Billy Clegg Sally Lewis NOTES TO EDITORS Spice Holdings plc Spice is a support services business operating in the utilities and facilitiesmanagement sector. The Group's operations were founded in 1996 and have theirorigins in the electricity industry, though the range of activities has sincebeen expanded into the water sector, niche telecommunications services, thepublic sector and commercial facilities management. Spice's businesses have acommon theme of delivering and co-ordinating infrastructure services tocustomers, and the technological element within the product mix has been builtup significantly over the course of the last three years. Circle Britannia and Serviceline Circle Britannia is a provider of outsourced facilities services to corporateclients and reinstatement services for major insurers. ServiceLine provides outsourced maintenance helpdesk services delivered eitheras part of an integrated facilities management service, incorporating CircleBritannia's facilities service operation, or as a stand alone service managingclient's existing suppliers. For further information: www.breval.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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