TP Group PLC Acquisition of Westek Technology Ltd (2666G)
05 November 2018 - 6:00PM
UK Regulatory
TIDMTPG
RNS Number : 2666G
TP Group PLC
05 November 2018
5 November 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upo5n the publication of this
announcement, this inside information is now considered to be in
the public domain.
TP Group plc
("TP Group" or the "Company" or the "Group")
Acquisition of Westek Technology Ltd.
Acquisition adds new technologies and capabilities, customers
and international growth potential
TP Group (AIM: TPG), the specialist services and engineering
group, is pleased to announce the acquisition of the entire issued
share capital of Westek Technology Limited ("Westek") for an
initial consideration of GBP3.0 million, subject to adjustment to
reflect Westek's net asset position at completion, with a maximum
additional GBP0.5 million payable on delivery of certain transition
activities within 12 months following completion of the
acquisition.
The acquisition of Westek will be earnings accretive to the
Group for the full financial year ending 31 December 2019, and will
be funded from existing cash resources.
Westek is a leading provider of rugged, high performance
computer servers and ancillary equipment for military and
industrial customers predominantly in the UK, Europe and the United
States, many of whom are not currently supplied by TP Group. The
business operates from a facility in Wiltshire.
The acquisition of Westek is a strategic addition of proven
capability in the design and manufacture of advanced electronic
systems, providing specialist high-performance products. This
capability also offers vertical integration with the rugged control
systems already delivered with TP Group's packaged equipment
offerings.
The Westek business will be managed within, and contribute to,
the Group's existing Technology and Engineering business
stream.
Westek reported revenues of GBP3.5 million and profit before tax
of GBP0.2 million in the financial year ended 31 December 2017. As
at 31 December 2017, Westek had gross assets of GBP2.3 million.
Harry Hunter and Nick Wilson, both directors within Westek, will
remain with the business and continue to lead activities and
operations.
Phil Cartmell, Chief Executive Officer of TP Group,
commented:
"We are delighted to welcome Westek into the Group, continuing
our growth in high-technology packaged systems and equipment.
"This acquisition complements our existing activities in
complex, rugged equipment, yet in a different application area and
with different customers. The integration of Westek into the Group
will, I believe, add significantly to their outreach and accelerate
their growth whilst contributing to the success of TPG.
"We are also pleased that the existing directors, Harry and
Nick, will stay with the business post-acquisition to work closely
with us in successfully delivering a number of current and new
projects."
For further information, please contact:
TP Group plc Tel: 01753 285 810
Phil Cartmell, Chief Executive
Officer
Derren Stroud, Chief Financial
Officer
www.tpgroup.uk.com
Cenkos Securities plc Tel: 020 7397 8980
Mark Connelly / Callum Davidson
www.cenkos.com
Vigo Communications Tel: 020 7390 0230
Jeremy Garcia / Fiona Henson
/ Charlie Neish
www.vigocomms.com
Notes to Editors
TP Group designs and develops advanced technologies, engineers
complex equipment and systems, and provides support throughout
their operational life. The Company's shares have been traded on
AIM since July 2001.
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
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