Assetco Regulatory News (ASTO)

23 Jun 2006 07:00

Asfare Group plc23 June 2006 Press Release 23 June 2006 Asfare Group plc ("Asfare") Acquisition of the business and assets of Collins Youldon Limited & Ewart F Youldon Limited ("Collins Youldon") Asfare, a specialist supplier of products and services for the EmergencyServices and Homeland Security markets, today announces that it has completedthe acquisition of the Collins Youldon business and assets. Collins Youldonmanufactures hose reels, cable drums and related products supplying both thefire and the vehicle tanker industries. The total consideration is £912,000payable in cash and it is being funded through a bank loan of £700,000 and cashreserves. Collins Youldon products are leaders in their UK and European markets and itgenerates in excess of 40% of its revenues through exports predominantly toEurope. In the year ended 30th June 2005 Collins Youldon reported turnover of £2,752,000with adjusted pre-tax profit of £320,000. In the Management Accounts for the 10month period to the 30th April 2006 the turnover was £2,412,000 with an adjustedpre-tax profit of £285,000. Collins Youldon is based in Harlow, Essex and employs 28 people. The businesswas formed in 1976 as an associate company of Ewart F. Youldon, a family runengineering business founded in 1946. Since then Chris Youldon and his twodaughters have successfully managed the business and they will be retained in aconsultancy capacity for a short handover period. Tony O'Neill, CEO of Asfare,will take immediate day to day management control of the business which willbecome a division of AS Fire and Rescue Equipment Limited. Asfare has acquired the inventory, fixed assets and goodwill of the business forthe consideration of £912,000. The consideration is split into two mainelements: 1) An initial payment in cash of £689,000 due on completion 2) A deferred payment in cash of £223,000 adjusted for movements in theinventory and fixed assets since 1st January 2006. The adjusted amount will bepayable in two equal instalments: i) The first payment will be paid 6 months from completion ii) The second payment will be paid 12 months from completion Tim Wightman, Chairman of Asfare, commented on the acquisition; "We aredelighted to be purchasing Collins Youldon. It has excellent synergies with ourexisting business and will be a natural partner for AS Fire and Rescue. Thequality products and customer relationships that Collins Youldon enjoys willboth consolidate our existing position in the UK markets and further our desireto expand into Europe. "This acquisition represents a further step in Asfare's strategy to develop ourbusiness as a specialist supplier of products and services for both theEmergency Services and Homeland Security markets". - Ends - For further information, please contact: Asfare Group plc www.asfare.comTony O'Neill, Chief Executive Tel: +44 (0) 2380 861 966 Tim O'Connor, Finance Director Seymour PierceMark Percy / John Depasquale Tel: +44 (0) 20 7107 8000 Abchurch CommunicationsCharles Jack Tel: +44 (0) 20 7398 7700charlie.jack@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange