31st Mar 2008 09:01
LMS Capital PLC31 March 2008 31 March 2008 LMS Capital plc SALE OF ENERGY CRANES INTERNATIONAL LIMITED AND NAV UPDATE Sale of Energy Cranes International Limited LMS Capital plc ("LMS" or "The Company") is pleased to announce that it has soldits entire holding in Energy Cranes International Limited ("Energy Cranes") to amanagement buyout team backed by Close Brothers Private Equity ("CBPE"). The transaction places an enterprise value on Energy Cranes of £142 million andthe net proceeds to LMS are £83 million in cash, which will be applied to thedevelopment of LMS's investment portfolio and used for general corporatepurposes. LMS's return on equity from its investment in Energy Cranes isapproximately 4.5 times, with an Internal Rate of Return of approximately 40%. Energy Cranes was formed in 2003 when LMS acquired Sparrows Offshore,headquartered in Aberdeen, and several months later merged the business withAmerican Aero and Titan Cranes, based in the Gulf of Mexico. LMS's equityinvestment in the two transactions totalled £17.8 million. Energy Cranes provides a wide range of crane-related services to the offshoreoil and gas industry and has become increasingly international in itsoperations. Growth has been through organic development and through strategicacquisitions, both in the Gulf of Mexico (Dynamic Cranes in 2006, Marine &Mainland in 2007) and in the North Sea (Aberdeen Hydraulics in 2007). Thecompany has a presence in many further locations including the Caspian, theMiddle East, West Africa, Brazil, and Asia-Pacific. Employee numbers now exceed1700. Energy Cranes' turnover has nearly doubled during the last five years toapproximately £114 million for the year ended 31 December 2007, whileprofitability has increased at an even greater rate. Pre tax profits for 2007were £2.7 million and net assets at the year end were £18.8 million. Commenting on the transaction, Martin Pexton, Managing Director of LMS, said:"Energy Cranes is an excellent company with deep engineering expertise, a highcalibre workforce, an enviable health and safety record and a strong customerbase around the world. We are pleased to have been able to support itsdevelopment into a global business and, by adding value, to have deliveredstrong returns for our investors. We wish the team every success for thefuture." John Jordan, Chief Executive Officer of Energy Cranes, said: "LMS has been avery supportive investor and we have enjoyed a strong working relationshipduring their period of ownership. We have made a significant investment in ourinfrastructure to prepare for the next phase of development and look forward toworking with CBPE to grow the company further." Advisors to Energy Cranes and LMS on the transaction were Simmons & Company andPaull & Williamsons. CBPE were advised by KPMG and Maclay Murray & Spens. Ernst& Young and Dundas & Wilson advised management. Net Asset Value - update On 26 March 2008 LMS released its preliminary results for the year ended 31December 2007 at which date the Company's Net Asset Value ("NAV") per share was101 pence. The Company is taking this opportunity to provide an update on itsNAV per share following the sale of Energy Cranes. The pro forma NAV per share following the sale of Energy Cranes is 107 pence.This pro forma figure is based on the reported NAV at 31 December 2007 asincreased by the amount by which the net proceeds to LMS from the sale of EnergyCranes exceed the carrying value of the investment at 31 December 2007. Noaccount has been taken of changes in value of other investments in LMS'sinvestment portfolio, nor of trading since 31 December 2007. For further information please contact: LMS Capital plc 020 7935 3555Robert Rayne, Chief Executive OfficerMartin Pexton, Managing DirectorTony Sweet, Chief Financial Officer Arbuthnot Securities Limited 020 7012 2000Alastair Moreton Brunswick Group LLP 020 7404 5959Simon SporborgLeonora Pou About LMS Capital LMS Capital plc is an independent investment company whose shares are traded onAIM. The investment portfolio comprises investments in both the US and UK, witha spread of early stage and second round technology investments, developmentcapital and mature company buy-outs. www.lmscapital.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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