CIU.L Regulatory News (CIU)

6 Jun 2007 07:02

Cape PLC06 June 2007 6 June 2007 Cape PLC ("Cape" or the "Company") Acquisition of Total Rope Access International Limited Cape PLC (AIM:CIU), the international provider of essential support services forthe energy sector, announces the acquisition of Total Rope Access InternationalLimited ("TRAIL"). The consideration for the acquisition is £850,000 which has been paid as to£650,000 in cash on completion. The balance is payable in cash in instalmentsover the next 12 months. TRAIL are market leaders in the working at height and height safety systemsindustry and provide non-destructive testing, inspection, fabric maintenance,insulation, painting and window cleaning services using abseiling techniques towork at height. Since its inception in 1998, TRAIL has grown organically,predominantly through referral. Clients include: BAE Systems, British Energy,BP, Conoco, Drax, EDF, Huntsman, PX Power, Sabic and Shell. The acquisition will be immediately earnings enhancing for Cape. In the year to31 July 2006, TRAIL's turnover was £1.5 million and earnings before interest andtax were c. £300,000. Annualised turnover for the year to 31 July 2007 isexpected to be c. £2.3 million delivering earnings of c. £400,000. Theapproximate value of the assets acquired at completion is £150,000. Cape's Chief Executive Martin May commented: "We have worked closely with the TRAIL team for a number of years and are delighted that they have chosen to become a fully integrated part of the Cape business. They are an excellent fit for Cape as we have a number of significant clients in common and a similarly exacting approach to matters of health and safety. TRAIL also brings an important additional level of technical specialization to Cape's existing access services." ENDS For further information, please contact: Cape PLC Martin May, Chief Executive +44 (0)1924 876 276 Bell Pottinger Corporate & Financial Nick Lambert +44 (0)20 7861 3232 / +44 (0)7811 358 764 Notes to editors • Cape PLC is the parent company of a number of service providing organizations operating primarily in the oil and gas, petrochemical and power generation industries • 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 in the energy sector • Cape's ability to provide specialist cleaning services was enhanced by the acquisition of DBI Group Limited in October 2006 • On 24 April 2007, Cape completed a placing, of 26,923,077 ordinary shares at £2.60 per share to raise approximately £70m before expenses This information is provided by RNS The company news service from the London Stock Exchange