Last checked at 10 Oct 2018 07:00
10 October 2018
BRAEMAR SHIPPING SERVICES PLC
("Braemar" or the "Company")
Disposal of Braemar Response
Braemar Shipping Services plc (LSE: BMS), a leading international provider of broking, financial, consultancy, technical and logistics services to the shipping, marine, energy, offshore and insurance industries, is pleased to announce that, in line with its previously announced strategy, it has completed the disposal of its incident response business, Braemar Response, to Grupo Ambipar (the "Disposal"). The sale is for a total consideration of £774,000.
The Response business was part of Braemar's Technical division and is an environmental consultancy, contracting and training service provider in the marine, oil & gas, road and rail industries.
Background to this transaction
As previously announced, a decision was made by the Board of Directors earlier this year to divest Braemar Response. It contributed strongly during its time in the Group, but it was felt that the business would benefit from scale and the prioritisation of capital requirements within Braemar led the Board to believe that it would benefit from having an alternative owner.
Details and financial impact of the transaction
The consideration for the Disposal comprises an initial cash payment of £400,000 with a further £374,000 payable within twelve months of Completion.
Braemar purchased the business in 2006 for £900,000 since which time it has generated £4,250,000 in dividend income. During the year ended 28th February 2018 Braemar Response posted sales of £3,896,000 and a loss before taxation of £595,000.
Grupo Ambipar is a Brazilian environmental services group with over 3,000 employees.
James Kidwell, CEO of Braemar, commented: "We are delighted to have found an excellent home for Braemar Response in Grupo Ambipar. The disposal allows Braemar to focus on delivering its strategy for its core consultancy and professional services."
Ends
For further information, contact:
Braemar Shipping Services | Tel +44 (0) 20 3142 4100 |
James Kidwell, Chief Executive |
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James Hayward, Interim Finance Director |
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Peter Mason, Company Secretary |
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Stockdale Securities | Tel +44 (0) 20 7601 6100 |
Robert Finlay / Antonio Bossi, Corporate Finance |
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Henry Willcocks / Fiona Conroy, Corporate Broking |
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Buchanan | Tel +44 (0) 20 7466 5000 |
Charles Ryland / Stephanie Watson / Tilly Abraham
Park Partners (Corporate Finance Advisors) Jon Howells |
Tel + 44 (0) 20 3405 1035 |
Notes to Editors:
About Braemar Shipping Services plc
Braemar Shipping Services plc is a leading international provider of knowledge and skill-based services to the shipping, marine, energy, offshore and insurance industries. Founded in 1972, Braemar employs approximately 750 people, post this transaction, in more than 60 locations worldwide across its Shipbroking, Financial Technical and Logistics divisions.
Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.
For more information visit www.braemar.com