17th Feb 2005 07:00
Embargoed: 0700hrs 17 February 2005 Buckland Group plc ("Buckland" or "the Group") Acquisition of the business and certain assets of Kigass Electronics Limited Placing of 214,000,000 New Ordinary Shares at 0.5p per share by Seymour Pierce to raise ‚£1,070,000 The Board of Buckland is very pleased to announce that the Group hasconditionally agreed to acquire the business and certain assets of KigassElectronics Ltd ("Kigass") with the transaction expected to be completedtomorrow morning.Buckland is an industrial group with well-established, low cost productionfacilities in Bangkok, Thailand. It currently manufactures connectors for theconsumer electronics industry and, under the Derlite name, spark ignitionelectrodes for use in domestic and commercial gas appliances.Kigass, based in the West Midlands, designs and manufactures spark ignitionelectrodes and spark generators for use in domestic gas cookers and boilers. Inthe year ended 30 June 2004 Kigass reported a pre-tax loss of ‚£9,429, afteradministrative expenses of ‚£758,292, on sales of ‚£2,755,000. The assets beingacquired are plant & equipment valued at ‚£245,000, stocks of ‚£445,000, andgoodwill of ‚£700,000. After taking into account certain trade creditorbalances, the net consideration payable is ‚£1,070,000 which is being satisfiedby a placing by Seymour Pierce Ltd of 214,000,000 new ordinary shares at 0.5peach with institutional and other investors. Application has been made foradmission of the new ordinary shares to trading on the AIM market of the LondonStock Exchange and dealings are expected to commence on 18 February 2005.Kigass' product range and customer base are highly complementary withDerlite's. Whilst 95% of Kigass' sales are in the UK, over 95% of Derlite'ssales are currently in the rest of the EU and in USA/Mexico. Kigass' majorcustomers include Stoves, the UK market leader for domestic cooking appliances,Electrolux and AGA Rangemaster. The combination of Derlite and Kigass gives theGroup a significant presence as a supplier of ignition components to thedomestic gas cooker markets in the USA/Mexico and the UK, with enhancedpotential to strengthen its position both in these markets and in the rest ofEurope. In particular, the Board believes that there is significant scope tocross sell Kigass' spark generation equipment to Derlite's customers.Patrick Rogers, Executive Chairman of Buckland, commented,"Following the acquisition of Derlite in 2002, we have been able to grow itssales very rapidly by utilising our low cost production facilities in Thailandto win new business in North America and Europe. The acquisition of Kigasssignificantly strengthens our position as a manufacturer of gas ignitioncomponents, by giving us a range of spark generators, and offers us theopportunity to replicate Derlite's success by marketing Kigass' products morecompetitively in international markets."For any further information please contact,Patrick Rogers, Executive ChairmanBuckland Group plcTel. 07711 420 702John DepasqualeSeymour Pierce LimitedTel: 020 7107 8010Paul Foulger / Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDRelated Shares:
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