CIU.L Regulatory News (CIU)

31 Aug 2007 08:38

Cape PLC31 August 2007 31 August 2007 Cape PLC ("Cape" or the "Company") Cape PLC completes on the acquisition of Total Corrosion Control Group Pty Ltd Further to the announcement on 23 August 2007, Cape PLC (AIM:CIU), theinternational provider of essential support services to the energy sector, ispleased to announce that it has completed the acquisition of the Australianbased Total Corrosion Control group of companies ("TCC Group" or "TCC") on 31August 2007. In satisfaction of A$20 million of the initial consideration, Cape has todayallotted a total of 2,761,287 new ordinary shares ("Initial ConsiderationShares") to the vendors at a price of 293.6325 pence per share being the volumeweighted average price of Cape's shares over the five business days prior tocompletion of the acquisition. Application has been made for the InitialConsideration Shares to be admitted to trading on AIM which is expected to takeplace on 5 September 2007. In the year to 30 June 2007, the TCC Group's turnover was A$113.6 million (£45.9million), its earnings before interest, depreciation, tax and amortization wereA$14.9 million (£6.0 million) and it generated earnings before interest and taxof A$14.0 million (£5.6 million). The approximate value of the net assets beingacquired at completion is A$ 18.2 million (£7.4 million). Cape's Chief Executive, Martin May, said: "Cape's acquisition of the TCC Group is a major milestone in the achievement ofCape's international strategic plan. It will provide a stable platform fromwhich Cape can continue to develop its existing Far East/ Pacific Rimbusinesses, extend its footprint in the region and realise significant synergiesby working closely together with the management team of the TCC Group. Part of Cape's growth strategy is to relocate considerable quantities ofscaffolding equipment to Perth, from the major Sakhalin Island oil and gasproject in Russia where it will shortly be no longer required, to help expandTCC's presence in the Australian scaffold market. Cape's international strengths will supplement TCC Group's extensive experiencein the Australian market. The TCC Group's established presence in Australia'sbooming resources sector offers Cape an entry into a substantial growth sector." Background information TCC Group ("TCC"), formerly known as Total Corrosion Control was founded inApril 1982 by Terry Iannello, Sam Cinalli and Tony Iannello. TCC provides industrial products and services to the mining, oil, gas andconstruction industries. TCC's service offering includes Scaffolding, Industrial Blasting, ProtectiveCoatings, Insulation, Sheetmetal Fabrication, Polyurethane Coatings, FireproofCoatings, Rubber Lining, Rope Access, Asbestos Removal, and Skills Training andAssessment solutions. ENDS For further information, please contact: Cape PLCMartin May, Chief Executive +44 (0)1924 876 276 Bell Pottinger Corporate & FinancialNick Lambert / Victoria Geoghegan +44 (0)20 7861 3232 / +44 (0)7811 358 764 Third PersonAdrian Bradley +61 (0) 2 8298 6100 / +61 (0) 400 499 782 Collins Stewart Europe Limited +44 (0)20 7523 8350Chris Wells/ Mark Connelly Notes to editors Cape PLC is the parent company of a number of service providing organizationsoperating primarily in the oil and gas, petrochemical and power generationindustries. In the year to 31 December 2006, Cape reported turnover of £295.5 million. Cape currently employs c. 8,200 people in 23 countries worldwide. Cape specialises in the provision of scaffolding, insulation, fire protection,specialist cleaning and other essential services to major industrial clients inthe energy sector. Cape's ability to provide specialist cleaning services was enhanced by theacquisition of DBI Group Limited in October 2006. On 23 April 2007, Cape's shareholder's approved the placing of 26,923,077ordinary shares at £2.60 per share to raise £70 million (before expenses). On 6 June 2007, Cape acquired Total Rope Access International Limited. On 22 June 2007, Cape acquired Endecon Limited. This information is provided by RNS The company news service from the London Stock Exchange