MUR.L Regulatory News (MUR)

22 Jun 2006 14:30

Murgitroyd Group PLC22 June 2006 22 June 2006 Murgitroyd Group PLC ("Murgitroyd" or "the Group") Acquisition of Fitzpatricks Group Limited Murgitroyd, the European Patent and Trade Mark Attorney practice, is pleased toannounce that, further to the announcement made on 19 April 2006, the Group hasentered into a Share Purchase Agreement for the entire issued share capital ofFitzpatricks Group Limited for a consideration of £1.3 million, in addition toapproximately £240,000 of net assets. The acquisition follows a period ofextensive due diligence and is expected to complete on 30 June 2006. Under the terms of the agreement, £700,000 will be paid in cash upon completion,with the remainder being deferred over two years, payable as a combination ofcash and guaranteed loan notes. The transaction will be funded throughfacilities arranged with Clydesdale Bank PLC. Fitzpatricks Fitzpatricks Group Limited is the parent company of Fitzpatricks Limited("Fitzpatricks"), one of the UK's longest established and leading providers ofPatent and Trade Mark services. Based in Glasgow, the original firm was foundedby Hugh D Fitzpatrick in 1887. The practice was owned and managed by successivegenerations of the Fitzpatricks family, having had operations in Dublin,Belfast, London and Monaco. In 2000, Hugh D Fitzpatrick's grandson, AlanFitzpatrick, sold the business to its management in a MBO. For the year to 31 December 2004, Fitzpatricks turnover amounted to £3.9million, with EBITA totalling £32,000 and net assets amounting to £113,000.Current estimated net assets are £240,000. Three of Fitzpatricks' fourdirectors, all of whom are either Patent or Trade Mark Attorneys, will remainwith the company following the acquisition. Former Managing Director AlasdairHume will leave the company upon completion. A further five qualified Attorneys,as well as experienced support staff, will join the Group as part of thetransaction. In addition to Mr Hume's departure, Chairman Ian Steven, ChiefOperating Officer Alistair Orr and Finance Director Peter Lewis will each leaveat completion. Effects of the Transaction The acquisition of Fitzpatricks will further enhance the scope of Murgitroyd'sexisting Patent and Trade Mark practices. The integration of Fitzpatricks intothe core Murgitroyd business will provide the Group with a number of notablecorporate clients. The acquisition is expected to be both earnings enhancing asa result of administrative economies of scale and cash flow positiveimmediately. Fitzpatricks will trade under the Murgitroyd brand with immediateeffect. The enlarged Group's Glasgow operations will all be located in theGroup's principal offices in Scotland Street. Ian Murgitroyd, Group Chairman, commented: "We are delighted to announce that at the end of June, Fitzpatricks will becomepart of Murgitroyd Group. We believe that Fitzpatricks represents an excellentfit and the coming together of the two firms will add strength and depth to theservice offerings of both practices. The provision of a level of service whichexceeds expectations will remain the cornerstone of the enlarged group and theeconomies of scale will provide benefits to our clients, employees and investorsalike. I look forward to welcoming Fitzpatricks' staff to Murgitroyd which willtake our total staff to 200 across nine European offices. This represents afurther extension to our offering of fully rounded pan-European IntellectualProperty services." Ian Steven, Chairman of Fitzpatricks Group Limited, said: "The Board and shareholders of Fitzpatricks Group have accepted the offer fromMurgitroyd Group because they believe it delivers immediate benefits to theshareholders, staff and clients of both groups and we look forward to sharingthe benefits and opportunities which come from being part of a bigger group" For further information, please contact: Keith Young, Murgitroyd Group PLC, 07802 951913Alasdair Robinson, Noble & Company Limited, 0131 225 9677Nadja Vetter / Emma Consett, Cardew Group, 020 7930 0777 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. Thepractice has offices in Aberdeen, Belfast, Dublin, Glasgow, London, Muenster,Munich, Nice and York. Murgitroyd Group PLC specialises in the provision of Intellectual Propertyservices, including filing, prosecuting, litigating, licensing, assigning andrenewing Patents, Trade Marks and Designs, advising on Copyright and generallyassisting clients with the management of their Intellectual Property. Patentservices span the major sectors of the global economy including technology,engineering, electronics, chemistry and biotechnology with clients ranging fromlarge multi-national corporations to individual inventors and both in-house andexternal Patent Attorneys. The practice services major Trade Mark clients fromthe personal care, clothing, food and drinks, tobacco, pharmaceuticals,chemicals and oil industries together with service sector, sport andentertainment and retail industry clients. Trade Mark services are alsoprovided to other private practice Trade Mark Attorneys. This information is provided by RNS The company news service from the London Stock Exchange