APC Technology Regulatory News (APC)

10 May 2006 07:00

Advanced Power Components PLC10 May 2006 Advanced Power Components plc ("APC" or "the Company") Acquisition of Hero Electronics Limited Advanced Power Components plc, a specialist distributor of electronic componentsand manufacturers' representative, announces that, yesterday, it acquired theentire issued share capital of Hero Electronics Limited ("Hero"), for a totalconsideration of approximately £2 million in cash. The consideration comprises £440,000 for goodwill and approximately £1,560,000for the net assets, subject to adjustment for the actual value of the net assetson completion. Of this total consideration, £500,000 will be deferred and paidin six quarterly instalments over the next 18 months. In addition, an amountequal to 37.5 per cent of the agreed inventory value included in the net assetson completion will be held on retention and paid over a period of 24 months tothe extent that the relevant stock is sold during that period. Hero is a commercial electronic component distributor addressing four mainproduct areas comprising Integrated Circuits ("ICs") and Crystals, Electronicsand Sensors, Light Emitting Diodes ("LEDs") and Displays. The acquisition ofHero will not only add a number of new product lines to those currently offeredby APC but will also significantly increase the Company's customer base. In the audited accounts for the twelve months ended 31 October 2005, Heroreported revenues of £2,372,000 and a profit before tax of £33,000. As at 31October 2005, Hero's net assets were £1,556,000, including cash balances of£889,000 and inventory of £356,000. Following the acquisition, the Company intends restructuring its organisation toprovide a more comprehensive product and service offering, as follows: • Hi-Rel - to distribute a variety of specialist electronic componentsinto the defence and aerospace sectors; • Hero - to distribute a variety of electronic components into commercialand industrial markets; • Go! Technology - to provide a kitting and materials management serviceto companies wishing to outsource non-core activities, offering services rangingfrom material procurement to full production management; and • SBM - to represent manufacturers of electronic components addressinggeneral industrial and consumer markets. Mark Robinson, Chief Executive, commented: "We believe that this is an excellentacquisition for the Company, enabling APC to expand both its product range andcustomer base. This transaction represents a significant step towards theCompany's return to profitability." For further information please contact: Mark Robinson, Chief Executive Officer Tel: 01634-290588 10 May 2006 This information is provided by RNS The company news service from the London Stock Exchange