Acquisition of Loadcell Services (7990T)
December 13 2011 - 2:01AM
UK Regulatory
TIDMNBI
RNS Number : 7990T
Northbridge Industrial Services PLC
13 December 2011
13 December 2011
NORTHBRIDGE INDUSTRIAL SERVICES PLC
("Northbridge" or the "Group")
Acquisition of Loadcell Services
Northbridge, the industrial services and rental company, is
pleased to announce that it has completed the acquisition of the
assets of Loadcell Services Pte Ltd and Loadcell Services BVI
("Loadcell"), an oilfield instrumentation supplier based in
Singapore (the "Acquisition").
Loadcell was formed in 1982 in Singapore by the current owner
and the operation in Vietnam was established in 1992. It now
operates throughout South East Asia. Loadcell supplies its
customers in the oil and gas sector with a broad range of equipment
and services, including drilling instrumentation, loadcells and
strain gauges. Its rental activity includes loadcells from 10 to
1,000 tonnes and hydrostatic pressure test equipment to 20,000 psi.
Further details of its activities, services and customers can be
found on Loadcell's website, www.loadcellservices.com.
Loadcell has been acquired by Northbridge Loadcell Services Pte
Ltd ("NLS"), a wholly-owned subsidiary of Northbridge, incorporated
for the purposes of the Acquisition, and will assume the name
following the Acquisition. The vendor, who is retiring, has entered
into a full time service agreement with NLS for an initial
three-month period and thereafter will provide consultancy services
for a further 24 months. Key staff have agreed new employment
contracts and arrangements have been made to ensure an orderly
transfer of the business and assets.
Consideration for the tangible assets of the business will be in
cash and comprises payments totaling S$2,093,000 (c.GBP1 million)
which will be payable in three tranches: 25% on completion, 25%
after six months and the final 50% after 12 months, each of which
will be met out of the Group's current cash resources. In addition,
the vendor is entitled to an earn-out payment based on the gross
profits generated by the Loadcell assets over the 24 months
following completion of the Acquisition. The maximum total
consideration payable, including the tangible assets, is
S$4,093,000 (c.GBP2 million) over the 24 month period. The
additional payment will only be made if gross profits from the
Loadcell assets exceed S$2 million per annum in each of the two
years following completion. The average monthly revenue during the
seven months ended 31 July2011 from Loadcell's unaudited accounts
was S$370,000 (c.GBP180,000).
NLS will share the Group's existing premises in Singapore and a
new senior manager has been appointed who will also assist with the
existing Northbridge Asia Pacific business.
Commenting on the Acquisition, Eric Hook, Chief Executive of
Northbridge, said:
"We are very pleased to have completed this acquisition, which
demonstrates the ongoing commitment to our business strategy.
Loadcell is an excellent fit with Northbridge's existing business,
particularly in the Asia-Pacific region, building on the previous
acquisition of Tasman in Australia. The consideration will be
satisfied from the Group's existing cash resources and it is
expected that it will be earnings enhancing in the longer run. I
look forward to working with the existing management team to fully
integrate and grow the Loadcell business.
"We are continuing to look at a number of potential acquisitions
and are committed to finding those which are best suited to our
strategy for long term growth and will also ensure the best
possible returns for our shareholders."
For further information:
Northbridge Industrial Services plc
Eric Hook, Chief Executive Officer
Craig Robinson, Finance Director 01283 531645
Arbuthnot Securities Limited (Nominated Adviser
& Broker)
Antonio Bossi
Ed Groome 020 7012 2000
Buchanan Communications
Charles Ryland
James Strong 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, 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 and Australia 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
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