CNCT.L Regulatory News (CNCT)

20 Mar 2008 07:01

Smiths News PLC20 March 2008 SMITHS NEWS PLC Acquisition of 50% interest in Rascal Solutions Limited ("Rascal Solutions") and entry into a shareholders' agreement with KEM Investments LLP ("KEM Investments") in relation to Rascal Solutions Smiths News PLC, ("Smiths News"), a leading newspaper and magazine wholesalerand distributor, today announces that it has acquired from Retail & MailingSolutions LLP a 50% interest in Rascal Solutions, a company specialising inproviding inventory management solutions for use by major retailers in themagazines and newspapers category. The total consideration for the acquisition is £3 million in cash, comprising aninitial payment of £2 million and a deferred payment of £1 million (to be paidon 30 October 2008). As at the year ended 31 May 2007, Rascal Solutions had gross assets of £1.5million and for the financial year ended on that date had profits before tax andshareholder management fees of £0.2 million. Simultaneously with theacquisition, Smiths News has entered into a shareholders' agreement with theother shareholder in Rascal Solutions, KEM Investments in relation to theaffairs of Rascal Solutions. Peter Kemble, a member of KEM Investments LLP,continues as Managing Director of Rascal Solutions. Mark Cashmore, Group Chief Executive, commented: "Rascal Solutions hassuccessfully established itself in the provision of in-store news productsolutions for retailers with its innovative approach and software products.Investing in this business is consistent with our overall strategy of improvingthe service available to retailers and reducing waste in the supply chain." Enquiries: Smiths News PLCKerrie Colford Investor Relations 01793 563516 Brunswick Group LLPAideen Lee Media Relations 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange