Hargreaves Serv Regulatory News (HSP)

4 Sep 2006 07:03

Hargreaves Services PLC04 September 2006 For Immediate Release 4 September 2006 Hargreaves Services plc ("Hargreaves" or the "Group"), Acquisition of Norec Limited Hargreaves Services plc (AIM:HSP), a leading provider of transport and supportservices to the energy and waste sectors, is pleased to announce that, furtherto the announcement made on 14 July 2006, agreement was reached after close ofbusiness on 1 September 2006 to acquire the entire issued share capital of NorecLimited ("Norec") for a cash consideration of £5.5 million which is subject toupward or downward adjustment of up to £1.5 million dependent upon the financialperformance of Norec for the year to 31 December 2006. Norec has an established infrastructure and reputation for providing outsourcedservices to the power generation, utilities and minerals industries. Theservices include outsourced materials handling and equipment maintenance onbehalf of major customers in the power generation sector. In addition, Norecprovides consultancy services relating to outsourcing, design reviews andprocess rationalisation and feasibility studies; process plant design,manufacture and installation; process plant operation and maintenance; mobileplant services; building maintenance; project management; and managementsystems. The acquisition will add considerable scale, with 510 staff, toHargreaves existing Industrial Services business. The Directors believe thecombined size of the business will produce an enhanced position within themarket giving further opportunities for substantial growth. Norec reported, in its accounts for the year ended 31 December 2005, turnover of£23.4 million, profit before tax of £1.02 million and net assets of £0.8million. Following completion, it is intended that key members of Norec's management teamwill be offered options over 96,572 Hargreaves shares at an exercise price of393.5 pence per share. Gordon Banham, Chief Executive Officer of Hargreaves Services plc commented, "Iam delighted with the completion of the Norec acquisition; this is a longestablished business with a proven team and a track record of delivering highquality services. This acquisition further demonstrates the Group's progress inachieving the growth strategy outlined at flotation, and the Board continues toevaluate selective acquisition opportunities to enhance value for ourshareholders." James Capolongo, Chairman of Norec Limited commented, "I am delighted to seeNorec joining forces with a company of Hargreaves quality. I believe that withinthe Hargreaves group of companies, there will be additional opportunities forNorec to grow and prosper, and I look forward to watching what I am sure will bea most exciting future". Enquiries: Hargreaves Services plcGordon Banham 0191 373 4485Peter Dillon 0191 373 4485 Buchanan CommunicationsDiane Stewart 020 7466 5000Amy Rajendran Brewin Dolphin Securities 0113 241 0130Andrew KitchingmanAndrew Emmott This information is provided by RNS The company news service from the London Stock Exchange