20th Jun 2006 08:00
Brammer PLC20 June 2006 RAMAEKERS ACQUISITION BRAMMER ACHIEVES MARKET LEADING POSITION IN BELGIUM Brammer, the European industrial services group, today announces the acquisitionof 51% of the business of Aandrijvingen Ramaekers NV., with a commitment toacquire the remaining 49% between 2009 and 2012. Ramaekers is a privately ownedBelgian specialist industrial services business engaged in the provision ofcritical industrial components, bearings and related power transmissionproducts. The acquisition of Ramaekers is a strategic advance for Brammer, giving theCompany market leadership in Belgium in the provision of bearings and powertransmission products and further consolidating its leadership position inEurope. Highlights • The acquisition of the Ramaekers business will enhance Brammer'sposition as a major pan-European industrial services business in the keyindustrial economies of Germany, the UK, France, Spain and Benelux. • Consolidation of Ramaekers with Brammer's existing business in Belgiumwill achieve market leadership in Brammer's chosen product range and bringsignificant commercial and economic benefits to the enlarged group. Thebusiness had net sales of €9.8 million in the year to 31 December 2005. • The contract is for the acquisition of Ramaekers in two tranches, for aminimum consideration of €5.0 million with an initial cash payment of €2.5million. • The acquisition is expected to be earnings enhancing. David Dunn, chairman of Brammer, commented: "The acquisition of Ramaekers extends further Brammer's European marketleadership. It consolidates our position in Belgium and gives us a base fromwhich to generate earnings growth through further market penetration in theBenelux. The acquisition fits our strategy of acquiring quality bolt-oncompanies to complement the organic growth opportunities in our key account andpan-European businesses." Enquiries: Brammer plc 0161 902 5599 David Dunn, Chairman Ian Fraser, Chief Executive Paul Thwaite, Finance Director Issued: Citigate Dewe Rogerson Ltd 020 7638 9571 Martin Jackson Anthony Kennaway Background to the acquisition of Ramaekers Introduction Brammer, the European industrial services group, today announces the acquisitionof 51% of the business of Aandrijvingen Ramaekers NV with a commitment toacquire the remaining 49% subject to an earn-out by 2012. Ramaekers is engagedin the provision of critical industrial components including bearings, seals andpower transmission products to a wide variety of industrial and commercialcustomers. Terms of the acquisition Brammer will acquire a 100% interest in Ramaekers in two tranches. The firsttranche will be the purchase of 51% effective from 20 June 2006 for whichBrammer will pay €2.5 million. The second tranche will be the purchase, between 2009 and 2012, of the remaining49% for a minimum consideration of €2.5 million. The consideration for thesecond tranche will be increased up to a maximum of €6.0 million should certainagreed profit targets be achieved. Background on Ramaekers The Ramaekers business has 5 branches and 32 employees. The product range includes bearings, belts, couplings, motors and chains and isa good fit with Brammer's existing product portfolio. The Ramaekers business generated sales and pre-interest profits of €9.8 millionand €0.8 million respectively in the year to 31 December 2005. Net assets were€0.8 million at the year end. Reasons for the acquisition The acquisition of the Ramaekers business is in line with Brammer's strategy offurther developing its position as the leading pan-European industrial servicesbusiness through both organic growth and consolidation. The acquisition of the Ramaekers business: • gives Brammer leadership in the provision of bearings and mechanical power transmission in the Belgian market; • further enhances Brammer's key account and pan-European capabilities; • presents an opportunity to achieve synergies through the integration of Ramaekers with Brammer's existing Belgian business. In line with strategy, further acquisitions are being sought to consolidateBrammer's position as the only supplier capable of servicing the needs of majorpan-European customers for critical industrial components, bearings and relatedproducts. ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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