Acquisition

8th Jan 2008 08:40

Low & Bonar PLC08 January 2008 LOW & BONAR PLC (the "Company") Acquisition The Company announces that its subsidiary company, Bonar Floors Limited ("BonarFloors"), has purchased the entire issued share capital of Westbond Limited("Westbond"), a producer of fusion-bonded carpet tiles, from Cambrosa Holdings Limited ("Cambrosa") pursuant to an agreement between Bonar Floors, Cambrosa,Jorgen Hansen (as covenantor) and the Company. Subject to later adjustment for certain changes to the levels of net cash andworking capital in Westbond at completion, the consideration for theacquisition will be up to a maximum of £10.9 million. An initial payment of £6.4million has been paid in cash. Deferred consideration will become payable in cash by 31 July 2008, dependentupon the EBITDA of Westbond for its financial year to 30 April 2008. Deferredconsideration in excess of £4.1 million will be held in escrow and released onrevenue thresholds from key customers during Westbond's 2008/9 financial yearbeing reached. In the year ended 30 April 2007, Westbond made profits before tax of £0.6million and at 30 April 2007 it had gross assets of £3.8 million. Bonar Floors expects to be able to realise certain benefits from cross-sellingof products, both in the UK and via the complementary international salesforceand distributor networks of the two businesses. There are also expected to be cost savings from synergies between the businesses. Commenting on the acquisition, Paul Forman (Group Chief Executive) said "We aredelighted to be announcing this transaction. Westbond offers an excellentopportunity to pursue our organic and acquisition driven growth strategy in both divisions following the successful acquisition of the MTX Group which wecompleted last week". Mark Sefton (Managing Director, Bonar Floors Division) said "The Westbond brandand product range are highly complementary to our Tessera business, and thecombination of Westbond and Bonar Floors will create a very strong player inthe growing European contract tile market". 8 January 2008 Enquiries: Low & Bonar - Kevin Higginson (Group Finance Director) +44 (0) 20 7535 3180 Tulchan Communications Group Limited - David Trenchard +44 (0) 20 7353 4200 This information is provided by RNS The company news service from the London Stock Exchange

---

Related Shares:

LWB.L