17th Oct 2006 07:00
ASHTEAD GROUP PLC ACQUISITION OF LUX TRAFFIC CONTROLS LIMITED Ashtead Group plc, the equipment rental group serving principally the US and UKnon-residential construction markets, announces that its UK subsidiary AshteadPlant Hire Company Limited, which trades as A-Plant, has acquired Lux TrafficControls Limited ("Lux") for a consideration of ‚£15.5 million.Lux, which was established in 1966 by Laurence Lux, is a leading supplier oftraffic systems on a rental basis from a network of 44 locations throughoutGreat Britain. In the year ended 31 July 2006, Lux reported revenues of ‚£19.1million, EBITDA of ‚£1.8 million and pre-tax profits of ‚£0.9 million. Thebook value of its net assets at 31 July 2006 was ‚£4.6 million.The acquisition consideration is subject to downwards only adjustment, on apound for pound basis, to the extent that net assets at 30 September 2006 areless than ‚£4.25 million. Lux's operations will be integrated with those ofA-Plant offering significant potential for back office cost savings. Inaddition it is estimated that non-recurring employment and other costs relatingto the majority shareholders, Mr and Mrs Lux, who will not be joining A-Plantamounted to ‚£0.3 million in the year ended 31 July 2006.Commenting on the acquisition George Burnett, chief executive of Ashtead Groupplc said:"the acquisition of Lux, when combined with A-Plant's existing traffic systemsrental business, will make A-Plant the largest provider of traffic systems on arental basis in the UK and significantly extends our penetration of thisattractive market"Sat Dhaiwal, chief executive of A-Plant, added:"I am delighted to welcome the staff of Lux to A-Plant where traffic systemsrental will now form an important business within our Specialist division andmake us clear market leader with pro forma annual revenues in excess of ‚£26m.This acquisition forms part of our strategic plan to develop our SpecialistProduct Division and to be a market leader in our chosen products."Contacts: Cob Stenham Non-executive chairman 020 7299 5562 George Burnett Chief executive ) Geoff Drabble Chief executive designate ) 01372 362300 Ian Robson Finance Director ) Brian Hudspith Maitland 020 7379 5151 ENDASHTEAD GROUP PLCRelated Shares:
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