Assetco Regulatory News (ASTO)

11 Mar 2008 07:02

AssetCo PLC11 March 2008 For immediate release 11 March 2008 AssetCo plc ("AssetCo" and or the "Company") Acquisition of RIG Systems Limited ("RIG") AssetCo plc, (AIM : ASTO) a leading provider of support services to the UK Fire and Rescue Service, is pleased to announce that it has entered into an agreementto acquire the issued share capital of RIG Systems Limited, a specialist technical safety and rescue training consultancy to the UK Fire and RescueService and other emergency agencies. The consideration for RIG is £839,000 payable in cash. In addition, deferred consideration of up to £839,000 will be payable subject to certain performance criteria being met in the year to 31 May 2009. The deferred consideration will be satisfied 66% in cash and 34% by the issue of new shares. RIG is forecast to generate £240,000 profit before tax in the year to 31 May2008. RIG was founded in 2000 by Royal Marines officers to apply military trainingtechniques to the UK emergency services. RIG has enjoyed impressive growth, counting an array of Fire and RescueServices, Police Services, Local Authorities and Government agencies amongst itsclients and has become the market leader in the development of integrated water,height and confined space rescue risk control systems. In addition it suppliesmost leading brands of technology for those engaged in water safety and rescueand working at height. The Directors believe that RIG's expertise and productknowledge in this field will allow AssetCo to continue its philosophy ofproviding its clients with access to best of breed products and suppliers. This acquisition addcomplementary set of consultancy and training expertise tothe portfolio of services offered by AssetCo's specialist Emergency Resourcebusiness which recruits, trains and provides specialist staff for clients in the emergency sectors in the UK and overseas. John Shannon, Chief Executive Officer of AssetCo, commented: "RIG is a highly focused, niche business with proven expertise which is now in great demand throughout the UK. As the incumbent Water Rescue trainer to theLondon Fire Brigade, this transaction allows us to develop new services for ourkey client, whilst recent flooding events have highlighted the value of RIG's skills base and greatly accelerated its growth plans. Combining the practical knowledge within RIG with that of our Emergency Resource business will enable AssetCo to fulfil even more of the new specialist training requirements needed to support the deployment of frontline fire fighters and other emergency teams in the UK. The transaction is an important step for AssetCo, enhancing both the breadth and the quality of the services that it offers to the emergencyservices." Jez Hunter, Managing Director, RIG, commented: "RIG's integrated rescue approach has propelled our civil resilience businessforward at a tremendous rate. AssetCo is driven by the same core values,passionate about exceeding client expectations, regardless of the complexitiesof the project. AssetCo's Emergency Resource business is a perfect home for ourinnovative offerings, affording us immediate access to the resources andexpertise required to scale our training, equipment and consultancy solutions.With greater reach, investment and market profile, we now feel we are wellplaced to fulfil our ambition to become the UK technical rescue provider ofchoice." For more information please contact: AssetCo plc Tel: +44 (0) 20 8515 3999John ShannonFrank Flynn Buchanan Communications Tel: +44 (0) 20 7466 5000Tim AndersonIsabel Podda Hoare Govett Limited - Nomad Tel: +44 (0) 20 7678 8000Stephen BowlerJohn MacGowanRichard Crichton Kaupthing Singer & Friedlander Capital Markets Ltd Tel: +44 (0) 20 3205 5000Nicholas HowMarc Young About AssetCo (www.assetco.com) AssetCo plc, (AIM : ASTO), is a leading provider of outsourced and managedsupport services to the emergency and homeland securities markets in GreatBritain and Northern Ireland and emerging markets overseas. The company employssome 860 people in twelve locations. Subsidiaries of AssetCo plc include: AssetCo Emergency LimitedAssetCo Group Limited Papworth Specialist Vehicles LimitedAS Fire and Rescue LimitedCollins YouldonFSE LimitedTodd Research LimitedBlueAmberRed LimitedSimentra LimitedAssetCo Emergency Resource LimitedAES GroupUV Modular LimitedThe Vehicle Application Centre This information is provided by RNS The company news service from the London Stock Exchange