31st May 2007 08:04
Redhall Group PLC31 May 2007 For immediate release 31 May 2007 Redhall Group plc ("Redhall" or the "Company") £11.9m acquisition of Jex and Vendor Placing of 5,454,546 Ordinary Shares Redhall Group plc, the specialist engineering support services group, is pleasedto announce the acquisition of Jex Engineering Company Limited ("Jex") for £11.9million net of inherited cash. The consideration for the acquisition is to be settled by a vendor share placingof 5,454,546 Ordinary Shares at a Placing Price of 220p per share to raise £12m. Redhall will also utilise new bank facilities to bring the Company's definedbenefit pension scheme up to a fully funded position on an actuarial basis. Thedeficit determined by the last triennial valuation at 6 April 2006 was £3.25m. The acquisition is conditional upon admission of the new Ordinary Shares totrading on AiM. Application for Admission has taken place and is expected on 6June 2007. HIGHLIGHTS OF THE JEX ACQUISITION Significant profitable bolt-on acquisition to the current Redhall business Increased exposure to food, pharmaceutical and chemical markets Access to further design and engineering resource Strong presence in key geographical area previously targeted by the Group Substantial order book with further pipeline to come Strong synergies with other Redhall manufacturing and engineering operations Jex was founded in 1973 by its Managing Director, Tony Jex MBE and carries outthe design, manufacture, installation and commissioning of production equipment,with a particular strength in the branded/high-end confectionery and cerealmanufacturing sectors. The food sector accounts for 75% of Jex's business andthe pharmaceutical and chemical sectors 18%. For the year ended 31 October 2006, the Jex businesses generated turnover of£18.8 million and profit before tax of £1.65 million. Net assets as at 31October 2006 were £5.8 million. Currently, the Jex order book stands at over £7million. Commenting on the acquisition, David Jackson, Executive Chairman of Redhall,said: "I am delighted to welcome the Jex business and its employees to the RedhallGroup. Following the acquisition, Redhall will offer a balanced portfolio ofskilled engineering services in attractive, growing markets, including thethriving nuclear sector. We look forward to the future with confidence." For more information please contact: Redhall Group plc Tel: +44 (0)1924 385 386 David Jackson, Chairman and Chief ExecutiveSimon Foster, Deputy Chief Executive Altium Tel: +44 (0)161 831 9133Phil Adams/Simon Lord/Paul Lines Buchanan Communications Tel: +44 (0)20 7466 5000Isabel Podda / James Strong Notes to the Editor: Redhall is a well established engineering services group serving a range ofspecialist markets including nuclear, oil and gas, food manufacturing anddefence. The business operates in regulatory driven markets with high barriersto entry. In addition to its national skill base Redhall has an experiencedcentral management team led by David Jackson and Simon Foster. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RHL.L