BLTG.L Regulatory News (BLTG)

24 Jan 2007 08:06

Fonebak plc24 January 2007 Fonebak plc ("Fonebak" or "the Company") Acquisition of CRC Group plc ("CRC") and appointment of Chief Executive As announced earlier today, Fonebak plc, the leading outsource service providerof full lifecycle services to the mobile phone sector, is pleased to announcethe completion of its offer for CRC Group plc. Fonebak's "one stop shop" solutions include fulfilment, repair, resale,recycling and environmental support services. With legislation requiring clientsto take greater responsibility for the end of life recovery of the products theysell or use, Fonebak is well placed, having already created a successfulbusiness model servicing this market. With the acquisition of CRC, Fonebak has the ability to develop the marketfurther and provide similar services to other technology sectors such as thosecurrently being serviced by CRC. These sectors include IT, home gateway andmulti-media products. As well as expanding upon the services offered and developing the combinedclient base the acquisition will broaden Fonebak's geographical coverage andconsolidate a fully pan-European capability. The acquisition also brings Fonebak an experienced CEO in Gary Stokes, who isappointed as Chief Executive of Fonebak with immediate effect. Gary had been appointed as Chief Executive of CRC in April 2006 and hassubsequently led a successful restructuring of the business prior to its sale. Before joining CRC Gary was CEO of the Material Handling Division of LINPAC, aglobal packaging group. The Division had revenues approaching £200 million fromoperations spread across Europe, the Americas and Africa. Under Gary'sleadership, the Division delivered significant growth in revenues and profitsand established a leadership position in the market for long-life, reusablepackaging systems. Previously, Gary was Finance Director of Atkins plc andTomkinsons plc before subsequently being appointed Managing Director of retailoperations for Gaskell plc. Commenting, Gordon Shields, Chairman of Fonebak, said: "We are very pleased to announce the completion of the acquisition of CRC today.This transaction advances Fonebak's strategy of applying its full lifecycleservices proposition to a wider range of technology and communications products.We believe that the acquisition provides the opportunity to introduce Fonebak'sbusiness model to CRC's client base, creates scale for the Fonebak business, andbrings the additional geographical footprint necessary to achieve Fonebak'sambition of a fully pan-European offering of its services. We are also extremely pleased that Gary has taken up the role of CEO of theenlarged business following the acquisition. He has a proven track record ofdeveloping and growing multinational companies as well as significant experienceof managing public companies, which will be invaluable to the ongoing growth ofthe business." Gary Stokes, Chief Executive of Fonebak, added: "I am very much looking forward to taking up the reins at Fonebak. The enlargedbusiness is uniquely placed to meet the broader service requirements ofcustomers in the converging communications, IT and multi media sectors. Clients have increasing obligations to manage the full lifecycle of theirproducts and are looking to partner a smaller number of outsourced serviceproviders, capable of consolidating these services. Fonebak is positioned toexploit this opportunity and with the acquisition of CRC, is now able to offerthe full range of integrated services on a fully pan-European basis." The director disclosure requirements on appointment under the AIM Rules are setout below: There is no further information to be disclosed under Schedule 2, paragraph (g)of the AIM Rules, other than as below: Full name and age Gary Martin Stokes - 45 Current Directorships ADP Technical Services LimitedAutomated Integrated Diagnosis LimitedCommunicaid LimitedCommunication Repair Centre (UK) LimitedComputer Repair Centre LimitedCRC Communicaid sp.z.o.o.CRC Corporate Trustees LimitedCRC (Deutschland) GmbHCRC Global LimitedCRC (Grossbeeren) GmbHCRC Group plcCRC (UK) LimitedCrest Peripheral Services Limited Former directorships held within the last 5 years: Apex Linvar LimitedCG Paxton LimitedFuturewin LimitedKilian May E.P.S. Packaging LimitedKirk Dyson LimitedLinpac CDM LimitedLinpac Materials Handling LimitedLinpac Mouldings LimitedLinpac Paxton Holdings LimitedLinpac Storage Systems LTDLinvar LimitedOldergem LimitedPolymer Innovations LimitedPost Store LimitedQuillbush LimitedWCB Plastics Limited Former directorships of CRC subsidiaries placed in administration on 9 November2006: Teleca Telephone Service S.p.A.Kronos 2002 S.r.l. (together the "CRC Italian Business") As announced by CRC on 2 November 2006, following the administration of BenQMobile GmbH, a major customer of the CRC Italian Business, the Board of CRC madean application to place the CRC Italian business in administration. Theapplication was granted by the relevant authorities on 9 November 2006, and theadministration is continuing. -ENDS- Fonebak plcGary Stokes Tel:01844 261900 Gary.stokes@crc-group.com --------------------------- Arthur Crocker Tel: 01708 683016 arthur.crocker@fonebak.com -----------------------------Pelham Public RelationsCharles Vivian Tel: 020 7743 6672 charles.vivian@pelhampr.com -----------------------------Philip Dennis Tel: 020 7743 6363 philip.dennis@pelhampr.com ----------------------------- This information is provided by RNS The company news service from the London Stock Exchange