3rd Nov 2008 07:00
STADIUM GROUP PLC
3 NOVEMBER 2008
STADIUM GROUP PLC ACQUIRES ZIRKON LIMITED
Stadium Group Plc, the AIM-listed provider of Electronic Manufacturing Services ("EMS") and power solutions, announces the acquisition of Zirkon Limited ("Zirkon") for a net cash consideration of £2.5m funded by new debt facilities provided by Barclays Bank PLC.
Zirkon, an EMS provider since 1999, brings additional high technology market experience to the Group including considerable expertise in the industrial instrumentation, security, medical and mobility sectors.
Zirkon, which employs 84 people at its manufacturing operations in Rugby will change its name to Stadium Zirkon Limited and will trade as Stadium Electronics.
In the year ended 30 June 2008 Zirkon reported turnover of £7.3m, profit before interest and taxation of £0.6m and net assets at completion are expected to be approximately £1.6m on a cash free debt free basis.
Commenting on the deal, Nigel Rogers, Stadium Group Chief Executive, said: "In a time of continued consolidation in the UK EMS industry, we identified an opportunity to acquire a well managed business that offers a perfect fit with our operational model and growth strategy.
"Zirkon is an experienced company with a high quality customer base within growing market sectors.
"The acquisition will facilitate our expansion in the EMS market on the strength of combined capabilities and synergy between the customers and markets served and will play a significant role in the future development of Stadium Group plc."
Further enquires:
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Stadium Group plc |
Tel: 01429 852 500 |
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Nigel Rogers, Chief Executive |
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www.stadium-plc.com |
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Brewin Dolphin Limited |
Tel: 0845 270 8611 |
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Andrew Emmott |
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Parkgreen Communications Ltd |
Tel: 020 7933 8787 |
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Paul McManus |
Mob: 07980 541 893 |
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