15th Jul 2005 07:01
Low & Bonar PLC15 July 2005 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OFAMERICA, CANADA, AUSTRALIA OR JAPAN Acquisition of Xirion NV------------------------ Low & Bonar builds on fast growing grass yarn business-------------------------------------------------------Low & Bonar PLC announces the acquisition of the entire issued share capital ofXirion NV ("Xirion") by its Belgian subsidiary, Bonar Technical Fabrics NV, fora consideration of €13.6 million cash, based on a normal level of workingcapital, and the assumption of €2.9 million of debt. The consideration will bemet from existing debt facilities. Established in 2000, Xirion is a world leader in the high growth monofilamentgrass yarn market. This acquisition will complement Low & Bonar's existing grassyarn activities, as monofilament is the major alternative technology in themarket and will enable the combined business to offer a full product range toexisting and new customers. It will also give Low & Bonar immediate access to animportant new technology that would otherwise take several years to develop. Unaudited trading figures from 1 January 2005 to 31 May 2005, relating only tothe grass activities, were sales of €4.5 million and earnings before interest,tax, depreciation and amortisation of €0.7 million. At 31 May 2005, Xirion hadgross assets of €7.2 million. Xirion is expected to make a positive contributionto earnings in the current financial year, and has been investing significantlyto support further growth. In the audited results for the 16 months to 31 October 2004, Xirion, which atthe time also included significant non-grass activities, reported sales of €12.3million, profit before tax (after extraordinary items) of €0.1 million. The transaction is subject to the approval by Xirion's shareholders' meeting ofthe audited accounts for the 9-month period to 31 July 2005, with an expectedcompletion date of 31 August 2005. It is anticipated that the existing Xirionkey management will remain with the business. Commenting on the transaction, Low & Bonar Group Chief Executive Paul Formansaid: "We are very excited to be able to announce this acquisition. This is animportant strategic step for our successful Dundee-based Yarns business as themonofilament technology gives us access to a fast growth segment of the market,and increases our access to the continental European market. It furtherconsolidates our position as one of the two largest global suppliers in the highgrowth artificial grass market. It also gives us immediate access to anincreasingly important yarn technology. We look forward to welcoming the Xirionteam into our business."Contacts: Low & Bonar PLC + 44 (0)20 7298 6820Paul Forman, Group Chief ExecutiveJon Kempster, Group Finance Director 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:
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