19th Sep 2012 07:00
19 September 2012
OPSEC SECURITY GROUP PLC
(the "Company")
Acquisition of JDSU's Holographic Security Business
The Company is pleased to announce that it has entered into an agreement with JDS Uniphase Corporation to purchase its New Jersey-based holographic security business (the "Holographic Security Business") for an initial consideration of $11.5 million (the "Acquisition"). Further consideration of up to $4 million could become payable depending on whether certain performance conditions during the 12 month period after completion of the Acquisition are achieved. The consideration for the Acquisition will be satisfied through the Company's existing cash resources and additional bank facilities with JP Morgan Chase. The Acquisition is conditional on obtaining approval from key customers on the assignment of contracts together with the satisfaction of other customary closing conditions and is expected to complete in October 2012.
The Holographic Security Business is primarily focused on the production and supply of security holograms and related optical-security devices for transaction cards in addition to products for secure government documents and other brand protection customers. Key clients of the business include MasterCard, VISA and American Express. For the year ended 30 June 2012, the Holographic Security Business generated revenue of $19.7 million and profit before tax of $0.4 million. As at 30 June 2012, it had gross assets of $9.0 million.
Mark Turnage, Chief Executive of OpSec, commented:
"The acquisition of JDSU's Holographic Security Business demonstrates our commitment to providing the best brand protection solutions across an array of industries on a global scale. This addition complements OpSec's existing brand protection initiatives, broadens our vertical coverage and expands our customer base in key areas. The acquisition benefits all customers as we leverage our global footprint to deliver solutions that protect and enhance brand value in more markets across the world."
For further information, please contact:
OpSec Security Group plc
Mark Turnage, Chief Executive/ Mike Angus, Finance Director +1 720 394 2803
Shore Capital & Corporate Limited
Stephane Auton/Patrick Castle 020 7408 4090
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