1st Mar 2006 07:00
Low & Bonar PLC28 February 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OFAMERICA, CANADA, AUSTRALIA OR JAPAN Acquisition of Geo-Tipptex Kft.: Low & Bonar expands into Central and EasternEurope Low & Bonar PLC Low & Bonar PLC announces the acquisition of Geo-Tipptex Kft. ("Geotipptex") byits subsidiary Bonar International Holding, from Acquest Trading B.V., AcquestInvest B.V. and management. The consideration is €14 million in cash, based on anormal level of working capital, on a debt free cash free basis, subject tocertain adjustments, including Geotipptex's actual working capital and net cashposition. The consideration is being met from existing debt facilities. Established in 1987 Geotipptex is a Hungarian manufacturer of non wovengeotextiles. For the period 1 January 2005 to 31 December 2005, audited profitbefore interest and tax was €2.0 million, on gross assets of €11.2 million.Geotipptex is expected to make a positive contribution to earnings in thecurrent year. The existing Geotipptex key management, including the two ManagingDirectors, will remain with the business, and a management incentive plan hasbeen agreed. Commenting on the transaction, Low & Bonar Chief Executive Paul Forman said: "I am pleased to be able to announce the acquisition of Geotipptex which we havelong regarded to be an excellent business. This is a strategic step forward forour geotextiles business as it increases our access to the Eastern Europeanmarket, reinforces our position as a market leader in this segment, and buildsour increasingly successful Yarns & Fabrics Division further." Contacts: Low & Bonar PLC + 44 (0)20 7535 3180Paul Forman, Group Chief Executive Tulchan Communications + 44 (0)20 7353 4200Peter Hewer Nothing in this announcement should be construed as a profit forecast or beinterpreted to mean that the future profits of Low & Bonar PLC will necessarilybe greater than the historical published profits of Low & Bonar PLC Copies of this announcement are not being, and must not be, mailed or otherwiseforwarded, distributed or sent in, into or from the United States of America,Canada, Australia or Japan. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LWB.L