17th Nov 2005 07:03
ArmorGroup International plc17 November 2005 17 November 2005 ArmorGroup International plc Acquisition of Phoenix CP Limited ArmorGroup International plc ("ArmorGroup"), the leading international providerof protective security, ordnance reduction and mine clearance, and securitytraining services, is pleased to announce the acquisition of Phoenix CP Limited("Phoenix"), the UK's premium close protection training provider, for a totalconsideration of £4.25 million. Completion of the acquisition is expected totake place later today. Phoenix, based in Hereford, is the leading specialist provider of closeprotection training for the UK Armed Forces' resettlement courses and the majorrisk management companies that dominate the security industry. Phoenix is alsoboth an advisor on proposed licensing to the Security Industry Authority (SIA),the UK industry's regulatory body, and an SIA accredited close protectiontraining provider. The acquisition of Phoenix, which has two facilities in Hereford and holdsMinistry of Defence preferred supplier status, will bring synergistic benefitsto ArmorGroup's training division and will allow ArmorGroup to extend furtherthe range of services it offers. Furthermore, the present UK Government policyon regulation of the private security industry will require all close protectionoperators be fully trained and licensed as of March 2006. ArmorGroup, throughPhoenix's accredited training provider status, is now well positioned to benefitfrom the growing demand in UK security training. ArmorGroup has agreed to acquire the entire issued share capital of Phoenix fromMichael Clifford, James Devenney and Suzanne Clifford for a consideration of£4.25 million, being satisfied by £3.5 million in cash and by £0.75 million bythe allotment and issue to Mr Clifford on completion of 810,000 ordinary sharesof 1p in the capital of the Company (the "Consideration Shares"). Applicationhas been made to the UK Listing Authority for the listing of, and to the LondonStock Exchange for the admission of the Consideration Shares (810,000 ordinaryshares of 1p each fully paid), ranking pari passu with the existing ordinaryshares, to the Official List. Mr Clifford, who will remain Managing Director of Phoenix, will be restricted(except in limited circumstances) from disposing of half of the ConsiderationShares until 12 months after completion and from disposing of the other half ofthe Consideration Shares for a further 12 months. It is intended that, goingforward, Mr Clifford and his management team will play an important role inexpanding ArmorGroup's training business in Europe and the Middle East. For the year ended 31 August 2005, Phoenix reported operating profits of£469,000 on revenues of £1,655,000. Net assets of the company at the balancesheet date were £835,000. Jerry Hoffman, Chief Executive Officer, said: "We are delighted to announce the acquisition of Phoenix and I take greatpleasure in welcoming Mick Clifford, a renowned training industry leader, andhis highly experienced team to ArmorGroup. This is a very exciting acquisitionand is a further step in our strategy of geographical and service linediversification. Phoenix, as the UK's leading close protection trainingprovider, presents an excellent point of entry into the UK Military resettlementmarket, and further extends our international training coverage." Enquiries: ArmorGroup International plcJerry Hoffman, Chief Executive Officer Tel: +44 (0) 20 7808 5800David Seaton, Chief Financial OfficerNick Melson, Communications Manager Citigate Dewe RogersonPatrick Toyne Sewell/Ged Brumby Tel: +44 (0) 20 7638 9571 Notes to Editors ArmorGroup International plc ArmorGroup, which has its headquarters in London, has over 7,700 employees andoperations in over 26 countries. It provides its services principally to firstworld national governments, major international inter-governmental organisationsand multinational corporations. It operates principally in regions of the worldwith diminished law and order or with a high risk of terrorism or which wereformer areas of conflict including the Middle East, Africa, South America, theCIS and Asia. The Group listed on the London Stock Exchange in December 2004.For more information please visit www.armorgroup.com. Phoenix CP Limited Phoenix, based in Hereford, is the UK's leading specialist provider of closeprotection training to security professionals and military personnel as part ofresettlement courses. The company has trained men and women for the commercialsector since 2000 and has established an excellent reputation, holding preferredsupplier status with the Ministry of Defence for Armed Forces' resettlementtraining. Phoenix-trained personnel are highly sought after and are deployed ona wide variety of close protection assignments throughout the world. Phoenixworks closely with military resettlement organisations and is registered withthe Department of Education & Skills and can therefore accept students takingadvantage of Career Development Loans or other government led initiatives.Phoenix is already accredited to teach Security Industry Authority (SIA)approved close protection courses and additionally has been a member of the SIAExpert and Steering Committee assisting with the development of nationaloccupational standards for close protection licensing. For more informationplease visit www.phoenixcp.com Security Industry Authority (SIA) The SIA is the authority responsible for regulating the private securityindustry according to the requirements set out by the Private Security IndustryAct 2001. The SIA is an Executive Non-Departmental Public Body (NDPB)responsible directly to the Home Secretary, which carries out specialisedfunctions on behalf of its 'parent' government department and has substantialoperational freedom in discharging the functions given to it. A key role forthe SIA involves the managing and issuing of licences for people working inparticular areas of the private security industry in England and Wales. Atpresent, door supervisors, vehicle clampers, and security guards must belicensed and from 20 March 2006, close protection operators will also requirelicences. For more information please visit www.the-sia.org.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ARG.L