20th Jun 2005 07:00
Delling Group PLC20 June 2005 For Release 7:00am 20 June 2005 Delling Group Plc Overseas Acquisition Delling Group ("Delling Group" or "the Company"), the marketing support servicesgroup, announces that it has exchanged contracts to acquire Full Bredde AS, aNorwegian based subcontractor for delivering printed marketing material, for atotal consideration of £300,000, or approximately three times pre-tax profit. The acquisition, due to complete on 1 August 2005, will be paid in threeinstallments: £75,000 in shares based on the market price on 1 July 2005,£150,000 in cash on 1 August 2005, and the remaining £75,000, to be paid in cashon 1 August 2006 subject to certain conditions regarding sales performance. Full Bredde AS, a privately-owned business established in 2002, is a significantsubcontractor in the production of in-store advertising material to consumerproduction companies and retail chains in Norway. It has a strong customer baseand extensive contacts with marketing departments. For the year ended 31December 2004 Full Bredde AS had a turnover of approximately £1.1m, a pre-taxprofit of approximately £110,000 and net assets were £23,000 at 31 December2004. The acquired business has a strong customer base. Its assets and key employeeswill be fully integrated into Delling Group's current businesses in Norway toexploit customer demand for a "one shop" supplier in the marketing supportindustry. Commenting on the acquisition, Geir Lolleng, Chief Operating Officer, DellingGroup, said: "This acquisition is in line with our strategy of growingorganically and through niche acquisitions in ancillary market sections and itrepresents an excellent addition to our business in Norway. The acquisition addsfurther revenues, a strong customer base and competence in the procurement ofproduction services and logistics. The deal has been structured to optimiseshareholder value and avoid unnecessary dilution for current shareholders." ENDS For further information please contact: Delling Group Plc Aksel Bratvedt, Chief Executive 020 7010 8210; 077669152Geir Lolleng, Chief Operating Officer 0207 010 8210; +4670855672 Binns & Co PR Limited Peter Binns 0207 153 1477Hannah Sloane 0207 153 1480 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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