16th Jan 2006 07:01
Spice Holdings PLC16 January 2006 16th January 2006 ACQUISITION OF BAINEPORT ENGINEERING SERVICES LIMITED EXPANDS ELECTRICITY SERVICES DIVISION Spice Holdings plc ("Spice" or the "Group") is pleased to announce theacquisition of Baineport Engineering Services Limited ("Baineport") for aconsideration of up to £5.0 million representing a multiple of adjustedoperating profits of 6.2 times. Baineport, an electrical services companyheadquartered in Ely, Cambridgeshire and with offices in Grantham and Crewe willform part of Spice's Electricity Services Division, which operates under theFreedom trading name. In addition to the initial consideration of £4.5m paid in cash on completion, upto £0.3 million will be payable upon the receipt of unconditional writtenconfirmation of the renewal or extension of certain contracts and a further £0.2million will be payable upon the signing of those contracts. In the event thatsuch unconditional written confirmation is not received and the relevantcontracts are not signed by 31 December 2006 the entitlement to the additionalconsideration of £0.5 million will lapse. The consideration is subject to anadjustment based on net working capital at completion, but subject to an overallcap on consideration of £5.8 million. It is estimated that there will beapproximately £0.6 million of cash in Baineport at completion, before anypayment in respect of the working capital adjustment. The audited accounts of Baineport for the year ended June 2005 showed turnoverof £9.1 million, operating profits (after adjusting for resigning directorsremuneration and one-off costs) of £0.8million and pre-tax profits (afteradjusting for resigning directors remuneration and one-off costs) of £0.8million. Net assets at 30 June 2005 were £1.3 million. Baineport provides a range of engineering services including electrical networkdesign, installation, testing and commissioning and inspection and maintenanceservices for electric Distribution Network Operators and larger industrial andcommercial clients. Baineport also installs and maintains private electricnetworks. It employs over 170 highly skilled technical staff operating acrossSouth East England, the Midlands and North East England. Baineport was established in 1996 by Steve Wright and Paul Johnson and in 2005,Steve James and Peter Hulyer were also appointed as directors, having been withthe business for several years. At completion, Steve Wright and Paul Johnsonwill resign as directors but will be retained on a consultancy basis; SteveJames and Peter Hulyer will continue as directors of Baineport. Simon Rigby, Chief Executive of Spice Holdings, said: "I am excited by the purchase of such a well respected company. Baineport hasthe skills we need to fully complement our Electricity division. In Steve Jamesand Peter Hulyer we have two highly experienced and respected managers, who weare delighted will be working with us to continue the development of ourElectricity Services operation. "The acquisition also extends our customer base and moves our Freedom brand intonew geographies across the UK." Steve Wright, Managing Director of Baineport, said: "I am pleased to see Baineport become part of Spice, a transaction which Ibelieve will provide our employees with an opportunity to grow the business aspart of a larger group. Steve James and Pete Hulyer have been a key part of ourgrowth to date and I am delighted that they will be part of the team takingBaineport into the next stage of its growth." ...Ends... For further information, please contact: Spice Holdings plc Tel: 0113 384 3838Simon Rigby, Chief Executive OfficerOliver Lightowlers, Group Finance DirectorCarl Chambers, Corporate Development Director Financial Dynamics Limited Tel: 020 7831 3113Sally LewisBilly Clegg 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. Baineport's website can be found at www.baineport.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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