Gooch & Housego PLC Life Sciences Acquisition (1631X)
08 August 2018 - 4:01PM
UK Regulatory
TIDMGHH
RNS Number : 1631X
Gooch & Housego PLC
08 August 2018
For immediate release 8 August 2018
Gooch & Housego PLC
("G&H" or the "Company")
Life Sciences Acquisition
Further enabling G&H's move into system based products
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of optical components & systems, announces that it has acquired
the entire issued share capital of VITL Ltd ('ITL" or "Integrated
Technologies Limited") for a total consideration of up to GBP22.0
million. This acquisition expands the Company's presence in the
life sciences sector and further enables G&H's move into system
based products.
ITL
Founded in 1977, ITL is a UK based specialist in the design,
development and manufacture of high-quality medical and in vitro
diagnostic (IVD) devices.
ITL is a market leading supplier with an established group of
long standing multi national customers. It provides full product
development, design, manufacturing and after sale service for the
commercialisation of medical diagnostic, analytical, precision
electro-mechanical and laboratory instruments. ITL is headquartered
in Ashford, Kent, with manufacturing sites in Ashford and Shanghai,
China, plus a US client servicing capability based in Virginia,
USA.
This acquisition enables G&H to take a significant step
towards meeting its strategic objectives, including doubling the
revenue of its life science business and accelerating the Company's
move up the value chain, with all of ITL's sales coming from system
based products. ITL's core group of electronic, software and
mechanical engineers, provides an enhanced platform on which
G&H can expand its systems capabilities.
Over time there are a number of potential benefits that will
accrue from ITL becoming part of G&H. These include leveraging
G&H's footprint in the US, China and Far East and combining the
Company's photonic expertise with ITL's high level systems
capability in order to provide a more attractive product offering
to G&H's medical diagnostic customer base.
Terms of acquisition
The total consideration payable by G&H is up to GBP22.0
million. This comprises an initial cash consideration of GBP14.0
million, funded from existing resources, together with GBP1.4
million of new G&H shares. There is also a deferred contingent
cash consideration of up to GBP8.0 million, based upon the
performance of the business over the next two years. The Company
has made an application to the London Stock Exchange for the 92,684
new Ordinary Shares to be admitted to trading on AIM. It is
expected that admission will become effective on or around 14
August 2018.
The historical annual revenue of ITL was c.GBP10 million,
adjusted operating profit was c.GBP1.5 million and the acquisition
is expected to be earnings enhancing in the first full financial
year of G&H's ownership. Historical gross assets were cGBP7
million.
Mark Webster, Chief Executive Officer of Gooch & Housego,
commented:
"This acquisition provides a key step towards achieving our
strategic aims of establishing 'critical mass' in our life sciences
business and moving up the value chain, through a more systems
based product portfolio.
"It means we are able to continue to diversify our business,
allow G&H access to new high growth markets, as well as
reducing, still further, dependency on the historically cyclical
micro-electronic sector.
"ITL is a high quality business, with a long standing customer
base, excellent engineering capabilities and a strong financial
track record.
"We are very much looking forward to working with the
management, staff and customers of ITL."
For further information
contact: -
Mark Webster / Andrew Boteler Gooch & Housego PLC 01460 256440
Mark Court/ Sophie Wills Buchanan 020 7466 5000
Patrick Robb / David Anderson Investec Bank plc 020 7597 5970
Notes to editors
1. Gooch & Housego is a photonics technology business
headquartered in Ilminster, Somerset, UK with operations in the USA
and Europe. A world leader in its field, the company researches,
designs, engineers and manufactures advanced photonic systems,
components and instrumentation for applications in the Aerospace
& Defence, Industrial, Life Sciences and Scientific Research
sectors. World leading design, development and manufacturing
expertise is offered across a broad range of complementary
technologies.
2. All financial information included in this announcement is
sourced from unaudited management accounts and excludes any
specific items. This announcement contains certain forward-looking
statements that are based on management's current expectations or
beliefs as well as assumptions about future events. These are
subject to risk factors associated with, amongst other things, the
economic and business circumstances occurring from time to time in
the countries and sectors in which G&H operates. It is believed
that the expectations reflected in these statements are reasonable
but they may be affected by a wide range of variables which could
cause actual results, and G&H's plans and objectives, to differ
materially from those currently anticipated or implied in the
forward-looking statements. Investors should not place undue
reliance on any such statements. Nothing in this announcement
should be construed as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQEVLBBVVFLBBQ
(END) Dow Jones Newswires
August 08, 2018 02:01 ET (06:01 GMT)
Gooch & Housego (LSE:GHH)
Historical Stock Chart
From Apr 2024 to May 2024
Gooch & Housego (LSE:GHH)
Historical Stock Chart
From May 2023 to May 2024