29th Feb 2008 07:01
Haynes Publishing Group PLC29 February 2008 Haynes Publishing Group P.L.C. Acquisition The Board of Haynes Publishing P.L.C. (Haynes) is pleased to announce theacquisition of Vivid Holdings BV (Vivid), the Dutch based provider of technicalinformation to the professional automotive market. The Vivid Group of companieshas its headquarters in Soest, Holland and operates throughout Europe. The Group publishes technical information for use by professional mechanicsengaged in servicing, maintaining and repairing both automobiles and heavytrucks. The Vivid products are offered in multiple languages and are availablein both an on-line web-delivered version or in an offline DVD format. The Vividdatabase contains technical information on maintenance, repair and diagnosis forover 6,500 European and Asian vehicle models, including heavy trucks and Vividproducts are used by over 25,000 independent car workshops throughout Europe.The Haynes Board is also pleased to confirm that the services of the keyfounders have been retained in the business and they will be an important partof the future growth and development of the Vivid Group. The consideration for the acquisition was €8.0 million (£6.0 million), payablein cash on completion. For the financial year ended 31 December 2007 the VividGroup reported a consolidated pre-tax profit of €0.9 million (£0.7 million) onrevenue of €4.3 million (£3.2 million). The Vivid Group had gross assets as at31 December 2007 of €2.9 million (£2.2 million). The Vivid database, which is compiled using market leading digital technologyand is available in 19 languages, will allow Haynes to leapfrog the developmentof its own professional product and immediately become the market leader in thesupply of digital technical information to the professional automotive market incontinental Europe. The acquisition will also provide Haynes with in-houseskills covering language translation, web development, DVD production and copyprotection security which are all complimentary to the way in which Haynes isplanning to develop its own product offerings going forward. This opens up thepossibility of an internet based multi-language consumer product for marketsthat could not support the cost base of a print based product. Geographically, the acquisition of Vivid presents an opportunity for Haynes toincorporate the Australian technical database, gained through the acquisition ofBookworks in 2007, into the Vivid product offering, thereby enhancing the valueof both the Bookworks and Vivid acquisitions. In the medium term, theacquisition provides Haynes with the ability to take the Vivid product offeringto new geographical markets where Haynes has a strong presence but Vividcurrently do not and this will be a key focus for management of both businessesin the short to medium term. Haynes is market leader throughout the English speaking world in the supply ofrepair and maintenance information to Do it Yourselfers in the automotive andmotorcycle markets. As a result, Haynes is well placed to extend its franchiseto become a major world wide supplier for all automotive and motorcycletechnical and repair information. This acquisition represents a significantstrategic step in that repositioning process. Additionally, in a changing global market place that is increasingly demandingcontent through multi-media channels, the Board of Haynes believes theacquisition of Vivid can be of great assistance in expanding its current coreproduct range into new products and new markets. With the majority of the funding for the acquisition coming from internal cash,the Group remains financially well placed to continue its pursuit of other newopportunities as they arise. Contacts : Haynes Publishing Group P.L.C.Eric Oakley, Group Chief Executive 01963 442 009Rebecca Nicholls (PR Agency) 01452 886 380Chris Wall (PR Agency) 01452 886 382 Blue Oar Securities Plc Jerry Keen 0207 448 4492Mike Coe 0117 933 0020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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