26th Jun 2007 07:03
Atkins (WS) PLC26 June 2007 WS Atkins plc divests Lambert Smith Hampton------------------------------------------- WS Atkins plc ('Atkins' or 'the Group'), the multi-disciplinary consultancygroup, is pleased to announce that it has agreed to the sale of its UK-basedproperty agency business Lambert Smith Hampton Limited ('LSH') to De Facto 1489Limited, a company backed by LSH management and Bank of Scotland IntegratedFinance ('BoSIF') for an enterprise value of £46.5 million, together withearn-out potential for a further £10 million. The sale is subject to certainregulatory approvals and is expected to complete before 31 July 2007. The LSH sale furthers Atkins' strategy of focusing on core activities andprovides funds for future investment. On completion of the transaction, £40 million of the consideration will be paidin cash and a further £6.5 million will be satisfied through the issue of avendor loan note, which will be interest free for three years and thereafterwill attract a 16 per cent coupon. An additional amount of up to £10 millionwill be payable depending on the financial performance of LSH in the year ending31 March 2008. The additional consideration will be satisfied through the issueof a further vendor loan note on similar terms to the original vendor loan note.The vendor loan notes will rank equally with BoSIF's investor debt and ahead ofloan stock issued to the management team on exit or winding up. LSH employs around 950 people and in the year ended 31 March 2007 generatedrevenues of around £81 million with profit before tax included in the AtkinsGroup results of circa £7.3 million (2005/06: £3.6 million). Gross assets as at31 March 2007 were approximately £42 million. The profit on disposal isestimated to be approximately £20 million assuming that no additional paymentsare made by LSH in relation to the performance in the year ending 31 March 2008under the earn-out. Chief Executive Keith Clarke said: "This is a significant transaction as we divest this non-core business. I wishthe management of LSH every success in taking the business forward. This dealenables the Group to focus on its core businesses as it looks to further developcapabilities in its principal areas of expertise." 26 June 2007 ENQUIRIES: Atkins Tel: 01372 726140 Keith Clarke, Chief ExecutiveRobert MacLeod, Group Finance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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