Northbridge Industrial Services PLC Acquisition (0869T)
15 November 2013 - 6:00PM
UK Regulatory
TIDMNBI
RNS Number : 0869T
Northbridge Industrial Services PLC
15 November 2013
15 November 2013
NORTHBRIDGE INDUSTRIAL SERVICES PLC
("Northbridge" or the "Group")
Acquisition of the assets of Oilfield Material Management
Limited ("OMM BVI")
Northbridge, the industrial services and rental company, is
pleased to announce that it has today completed the acquisition of
the trade and assets of OMM BVI based in Abu Dhabi for an initial
consideration of US$3.0 million (GBP1.9 million) (the "Initial
Consideration"), made up of US$2.5 million (GBP1.6 million) in cash
and US$0.5 million (GBP0.3 million) in 66,829 Northbridge ordinary
shares ("Ordinary Shares") in addition to a deferred payment
element of a maximum of US$4.75 million (GBP3.0 million) (the
"Deferred Consideration"). The new Ordinary Shares are subject to a
38 month lock-in and orderly market agreement.
OMM BVI was founded in 1989 and is a rental provider of drilling
tools for the oil and gas industry to customers in the Middle East,
North Africa and the C.I.S.
The assets have been acquired by Northbridge (Middle East) FZE,
a wholly owned subsidiary of Northbridge, and will trade utilising
the Group's existing oil tools identity as "Tasman OMM Ltd".
In addition to the Initial Consideration, Northbridge expects to
pay a Deferred Consideration in March 2017. This will comprise a
minimum payment of US$2.5 million (GBP1.6 million) plus an
additional maximum payment of US$2.25 million (GBP1.4 million),
which will be subject to the performance of the business during the
12 months ending 31 December 2016. The maximum Deferred
Consideration will become payable if net profit before taxation
from Tasman OMM Ltd equals or exceeds US$3.4 million (GBP2.1
million) during that year.
Proforma unaudited accounts for the eight month period to 31
August 2013 indicate net assets of US$6.6 million (GBP4.1 million),
with annualised hire related revenue of US$4.6 million (GBP2.9
million). The business is cash generative at both operating and PBT
levels.
The acquisition marks the first utilisation of new debt
facilities agreed with KBC Bank NV which are available for use by
Northbridge on a global basis. Lloyds remain Northbridge's main
banking group and are fully supportive of the KBC facilities.
Commenting on the acquisition, Eric Hook, Chief Executive of
Northbridge, said:
"We are delighted to be announcing the acquisition of this
business which is an excellent strategic fit for the Group. It
complements Tasman Oil Tools Pty Limited, our strongly performing
business in Australia, and expands its presence into the Middle
Eastern market. It also adds to our already established successful
business in the region where it will share our existing location
and resources.
This acquisition follows rapidly on from the acquisition of
Crestchic (Asia-Pacific) which we announced on 13 September 2013
and continues our acquisition strategy of buying niche rental
businesses which are cash generative and have the potential for
further organic growth."
Total voting rights
Application has been made for admission to trading on AIM
("Admission") in respect of the 66,829 new Ordinary Shares being
issued as part of the initial consideration and it is expected that
Admission will occur on 20 November 2013. Following Admission, the
Company's issued share capital will comprise 17,424,332 Ordinary
Shares, including 152,150 Ordinary Shares held in treasury.
Therefore the figure of 17,272,182 ordinary shares should be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure and
Transparency Rules.
For further information:
Northbridge Industrial Services plc
Eric Hook, Chief Executive Officer
Craig Robinson, Finance Director 01283 531645
Westhouse Securities Limited (Nominated Adviser
and Broker)
Robert Finlay / Antonio Bossi / Paul Gillam
/ Henry Willcocks 020 7601 6100
Buchanan
Charles Ryland / Clare Akhurst 020 7466 5000
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist
industrial equipment to a non-cyclical customer base. With offices
or agents in the UK, US, Dubai, Belgium, Germany, France,
Australia, Singapore, India, Brazil, Korea and Azerbaijan,
Northbridge has a global customer base. This includes utility
companies, the oil and gas sector, shipping, construction and the
public sector. The product range includes loadbanks, transformers,
generators, compressors and oil tools. Northbridge was admitted to
AIM in 2006 since when it has recorded increased earnings and
dividends based on providing a high level of service,
responsiveness and flexibility to customers. It has grown by
acquisition of companies in the UK, Dubai, Azerbaijan, Australia
and Belgium and through investing further in those acquired
companies to make them more successful. Northbridge continues to
seek suitable businesses for acquisition across the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUSANROUAAAAA
Crestchic (LSE:LOAD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Crestchic (LSE:LOAD)
Historical Stock Chart
From Jul 2023 to Jul 2024