Cape enters Hong Kong - strategic acquisition

Embargoed: 0700hrs 13 March 2012

Cape plc

Cape enters Hong Kong SAR through strategic acquisition

Cape plc, the international provider of essential, non-mechanical industrial services to the energy and mineral resources sectors, is pleased to announce the acquisition of an 80% equity stake in Hong Kong Fuji Technology Co., Ltd ("HFT"), a leading industrial service provider in Hong Kong SAR, for a maximum cash consideration of HKD 58 million (GBP 4.75 million).

HFT is a market leader in the provision of thermal insulation, refractory linings, painting, grit blasting and scaffolding services to the power industry in Hong Kong SAR. Since its incorporation in 1993, HFT has developed an impeccable reputation for safe, reliable and timely delivery of its contracts with major EPCs, asset owners and operators within the Region. HFT has over 130 employees within the SAR, and has demonstrated strong growth of 105% CAGR over the past three years. HFT is projected to achieve revenues of HKD 87 million (GBP 7.13 million) in FY2012.

The acquisition marks Cape's entry into a new geography within the Far East & Pacific Rim business, and has allowed Cape to acquire an experienced, local management team who will assist in accelerating Cape's expansion further into the Far East Region.

Martin K. May, CEO of Cape commented:

"The acquisition of HFT presents an exciting entry into a strategically important market. This is a key step which provides a springboard for Cape's future expansion into Greater China. We see great potential for Cape in this venture and warmly welcome the HFT team, who share Cape's commitment to safety, reliability and timely delivery, into the group."

Paul L. Adams, Operations Director of Cape Far East & Pacific Rim commented:

"The amalgamation of HFT's strong local management team and track-record of delivery together with Cape's international expertise and range of innovative solutions makes for a powerful combination. We look forward to using these collective skills to deliver enhanced value to our customers in Hong Kong."

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Cape plc (www.capeplc.com), which is listed on the main market of the London Stock Exchange, provides a range of non-mechanical industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, training and assessment to both industrial plant operators and major international engineering and construction companies.

As a single source provider, Cape is able to provide a range of specialist multi-disciplinary services specifically tailored to meet the needs of the client providing the most intelligent and cost efficient solutions for our customers' non-mechanical in-plant maintenance and capital needs.

In the year ended 31 December 2011, Cape reports revenues of £722.5 million. With scale and leading market positions across its international footprint, Cape employs over 19,000 people in 30 countries.