25th Apr 2007 09:37
Company Health Group PLC25 April 2007 25 April 2007 Company Health Group PLC ("Company Health" or "the Company") ACQUISITION OF CHEVIOT ARTUS AND WORKING CAPITAL FACILITY Company Health (AIM: CHT), a provider of occupational health services tocorporates and medical evidence collecting services to life assurance providers,is pleased to announce that it has completed the acquisition of Cheviot ArtusLtd ("Cheviot"). This is the acquisition first announced in December 2006 atwhich time Cheviot was not named for reasons of commercial confidentiality.Cheviot is a holding company for two wholly owned businesses in the healthcaresector, Cheviot Artus (Skipton) PLC, an occupational health business based inSkipton, North Yorkshire and Cheviot Recruitment Limited, which specialises inrecruitment within the occupational health and the health, safety andenvironmental industries. The initial consideration of £700,000 will be satisfied by £99,870 in cash andthe issue of a zero coupon loan note for £600,130. This loan note is redeemable,or convertible into 1p ordinary shares in Company Health, at the election of thevendors, in six months. The conversion terms are at a price equivalent to 95% ofthe average of the previous five trading days' closing prices. In addition,there is an earn-out, payable in cash, based on eight times post tax profits ofCheviot in the 13 month period to 31 January 2008 with a cap of £3.06 million. Cheviot Recruitment Ltd. supplies qualified and experienced occupational healthnurses and physicians as well as health, safety and environmental advisers to ablue chip client base. Staff are supplied for either permanent placements ortemporary cover on a nationwide basis. Cheviot Artus (Skipton) providesoccupational health services and consultancy. In the year to 31st August 2006,Cheviot produced pre-tax profits of £98,384 on revenues of £3,263,685. In order to fund additional working capital for the enlarged business, CompanyHealth has arranged a new £300,000 short term loan, repayable on 31 December2007. The loan is being provided by Juniper Ltd ("Juniper"), a companyregistered in Gibraltar, and is guaranteed by the finance director of CompanyHealth Group, George Gonzalez. The loan is non-interest bearing but has a£25,000 premium payable on repayment of the principal. In addition, Juniper andGeorge Gonzalez will be awarded options to subscribe for 1 million new 1pordinary shares each in the Company at a price of 7.5p, exercisable within twoyears of the date of grant. Commenting on the news, Ralph Gough, Chairman of Company Health said: "I amdelighted that we have finalised this acquisition. Cheviot complements CompanyHealth's existing core occupational health business, providing additionalgeographic coverage and potential for significant synergy benefits. Therecruitment business - with its blue chip client base - will give us access to anationwide pool of healthcare professionals that will enable us to compete moreeffectively for national occupational health contracts." He added: "At the time of our flotation we announced our goal to be aconsolidator in this market and this acquisition clearly demonstrates ourcommitment to that goal and our ability to execute our strategy." - ends - For further information please contact: Ralph Gough, Chairman Simon Hudson / Clemmie CarrCompany Health Group Tavistock CommunicationsTel: 020 7553 8820 Tel: 020 7920 3150 Notes to Editors: Company Health Group is a national provider of quality, high value healthservices designed to benefit both employers and employees by adding value,reducing risks, promoting healthy working practices and taking a positive andproactive approach to managing health risks and issues in the workplace. TheCompany's shares are traded on the Alternative Investment Market of the LondonStock Exchange. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CHT.L