HgCapital Trust plc Regulatory News (HGT)

29 Mar 2006 14:06

HG Capital Trust PLC29 March 2006 The following is the text from a press release issued by HgCapital, whichmanages the investment portfolio of HgCapital Trust plc alongside those of otherclients. The trust, which participates in all of HgCapital's investments, willinitially invest approximately £12 million in First Technology Safety &Analysis. HgCapital agrees to acquire leading player in the design and manufacture of intelligent crash test dummies London, 29 March 2006. HgCapital, the European sector focused private equityinvestor, has entered into an agreement with Honeywell to acquire FirstTechnology Safety & Analysis ("FTSA") - a market leader in crash test dummiesand associated services - for a consideration of £50 million. The acquisition isconditional upon, inter alia, approval from regulatory authorities. FTSA, the Safety & Analysis division of First Technology plc, is a leadingplayer in the design and manufacture of intelligent crash dummies, crash wallsand instrumentation. It also manufacturers load cell products and strain gaugeservices, primarily for the automotive industry. It operates in an attractiveniche segment with growth driven by ever more stringent legislativerequirements, increased awareness of safety issues, and higher crash testingdemands on Tier 1 suppliers and automotive OEMs. FTSA reported sales of US$48 million in the year ended 30 April 2005 splitevenly between Europe, Asia and the US. FTSA has long held customerrelationships with every automotive OEM, most Tier 1 suppliers, independenttesting authorities, insurance companies and key regulatory bodies. The provision of services and products to the crash test industry in general ishighly fragmented. HgCapital will work with existing FTSA management to continueto grow the business. HgCapital was advised by Hawkpoint, Lovells and KPMG Transaction Services. Trevor Bayley, Partner at HgCapital commented:"We are acquiring an excellent business, with a strong and experiencedmanagement team, in a market which continues to grow ahead of GDP. FTSA is amarket leader and has a strong record of innovation and close relationships withinfluencers and customers around the globe. We are excited about the potentialof the business and look forward to working with management to capitalisefurther on the forthcoming legislative developments." Enquiries HgCapitalTrevor Bayley +44 (0)20 7089 7983 Maitland Suzanne Bartch +44 (0)20 7379 5151Peter Ogden This information is provided by RNS The company news service from the London Stock Exchange