MUR.L Regulatory News (MUR)

12 Jan 2005 07:00

Murgitroyd Group PLC12 January 2005 12 January 2005 Murgitroyd Group PLC ("the Group") Acquisition of David W.J. Castle & Co. Limited Murgitroyd Group PLC ("Murgitroyd"), the European Patent and Trade MarkAttorney, is pleased to announce that further to the announcement made on 31August 2004, the Group has completed the acquisition of the entire issued sharecapital of David W.J. Castle & Co. Limited ("Castles") a Patent and Trade MarkAttorney practice based in South London for a consideration of £3.3 million,plus the value of the net assets of approximately £700,000. The acquisitionfollows the completion of an extensive period of due diligence undertaken byMurgitroyd and its advisers. Of the consideration £1.5 million will be paid in cash at completion, with theremainder being deferred over four years, payable in a combination of cash andguaranteed loan notes. The transaction will be funded through facilitiesarranged with Clydesdale Bank PLC which, following a formal tender process, hasrecently been appointed as bankers to Murgitroyd. Castles Castles, headquartered in South London, is one of the UK's leading providers ofTrade Mark services. The company was founded by David Castle who has been themajor shareholder and Managing Director of Castles since its inception in 1986.Castles has regularly been voted in the top ten UK Trade Mark practices involvedin Trade Mark matters by industry publication Managing Intellectual Property. Ithas also featured amongst the leading practices in the Trade Mark field in theLegal 500. For the year to 31 December 2003, Castles' turnover amounted to £3.5 million,with profit before tax totalling £221,000 and net assets amounting to £366,000.Current estimated net assets are £700,000. David Castle has been appointed aDirector of Murgitroyd Group PLC with immediate effect and further details arecontained in the appendix to this announcement. Mr Castle shared ownership ofCastles with three co- directors. Two of the three other directors, who like MrCastle are Trade Mark Attorneys, will also remain with the company following itsacquisition by Murgitroyd. Effects of the Transaction The acquisition of Castles is expected to significantly enhance the scope ofMurgitroyd's existing Trade Mark practice through the addition of four qualifiedTrade Mark Attorneys, a Trade Mark trainee and thirteen support staff. Theintegration of Castles into the core Murgitroyd business will further providethe Group with a number of notable corporate clients and a significant presencein London. The deal is further expected to yield significant opportunities forMurgitroyd to develop its existing client offering and benefit from considerablecross-selling opportunities. The acquisition is expected to be both earningsenhancing and cash flow positive immediately. Castles will trade under theMurgitroyd brand with immediate effect. Ian Murgitroyd, Group Chairman, commented: "We are delighted to have completed the acquisition of the business and assetsof Castles and are pleased to welcome David Castle, his co-Directors and staffto Murgitroyd. We believe that Castles represents an excellent fit forMurgitroyd and will significantly strengthen our Trade Mark practice. It willalso offer a broader platform to provide Castles' clients with Patent expertise.The combination of the two companies will take Murgitroyd's total staff toapproximately 160 employees spread throughout eight European offices,representing a further step in our offering of a fully rounded pan-EuropeanIntellectual Property service." David Castle, Managing Director of Castles, said: "The integration of Castles into the Murgitroyd Group is a significantmilestone. Both the clients and employees of Castles will benefit from theresources of a larger, established International group which will furtherprovide us with the expertise to develop the Castles Patent offering as well ascontinuing to consolidate the strength of an already well established Trade Markpractice. I am excited about Castles future with Murgitroyd and am very muchlooking forward to a more client facing role." For further information, please contact: Keith Young, Murgitroyd Group PLC, 07802 951913Alasdair Robinson, Noble & Company Limited, 0131 225 9677Nadja Vetter, Cardew Group, 020 7930 0777 Appendix In accordance with Schedule 2 (f) and Schedule 4 (g) of the AIM Rules, thefollowing information in relation to the appointment of David Castle to theboard of Murgitroyd is disclosed: David William John Castle, 48, holds and has held within the five precedingyears the following directorships and partnerships: Current Directorships: David W.J. Castle & Co. Ltd. Found in France SARL Previous Directorships: Rio Brand Limited Previous Name: David William John Dunn On 11 January 2005, Murgitroyd entered into a three-year Service Agreement withDavid Castle at a current annual salary of £75,000. The first two years of theagreement are on a full-time basis, while the third year of the agreement willbe on a part-time basis. David is also entitled to health insurance. Save as set out above, there is no further information to be disclosed inrespect of David Castle under either Schedule 2 (f) or Schedule 4 (g) of the AIMRules. Notes to Editors Murgitroyd Group PLC, the holding company of Murgitroyd & Company Limited, aEuropean Patent and Trade Mark Attorney practice, was floated on the AlternativeInvestment Market of the London Stock Exchange ("AIM") on 30 November 2001. TheCompany is based in Glasgow with offices in Aberdeen, Belfast, Dublin, London,Muenster, Munich and Nice. Murgitroyd Group PLC specialises in the provision of Intellectual Propertyservices, including filing, prosecuting, litigating, licensing, assigning andrenewing Patents, Trade Marks and Designs and advising on Copyright. Servicesspan the major sectors of the global economy including technology, engineering,electronics, chemistry and biotechnology. Clients range from largemulti-national corporations to individual inventors and both in-house andexternal Patent and Trade Mark Attorneys. This information is provided by RNS The company news service from the London Stock Exchange