MUR.L Regulatory News (MUR)

25 Feb 2008 07:00

Murgitroyd Group PLC25 February 2008 25 February 2008 Murgitroyd Group PLC ("Murgitroyd" or "the Group") Acquisition of Kennedys Patent Agency Limited ("Kennedys" or "the Company") Murgitroyd, the European Patent and Trade Mark Attorney practice, is pleased toannounce that the Group has completed the acquisition of the entire issued sharecapital of Kennedys Patent Agency Limited for a consideration of approximately£3.4 million, including net liabilities to be confirmed by Completion Accounts,but estimated at around £200,000. The acquisition follows a period of extensivedue diligence, and was completed on 22 February 2008. Under the terms of the agreement, £2.4 million was paid in cash upon completion,with the remainder being paid over three years. The transaction has been fundedthrough facilities arranged with Clydesdale Bank PLC. Kennedys Kennedys Patent Agency Limited, a European Patent and Trade Mark Attorneypractice is headquartered in Glasgow, with additional offices in both Aberdeenand Newcastle. The practice, founded in 1997, was owned and managed by DavidKennedy and Neil McKechnie. For the year to 31 August 2007, Kennedys' turnover amounted to £3.3 million,with EBITA totalling £208,000 and net assets amounting to £41,000. Netliabilities at completion, to be confirmed by Completion Accounts, are estimatedat around £200,000, principally as a result of the Company's share of aheritable property being excluded from the acquisition. With the exception ofMr Kennedy and Mr McKechnie, all of Kennedys' Patent and Trade Mark Attorneysare remaining with the Company following the acquisition. Mr Kennedy and MrMcKechnie left the Company upon completion. In addition to the six qualifiedAttorneys remaining with the Company, eight part-qualified Attorneys and fiveexperienced support staff will join the Group as part of the transaction. Inaddition to Mr Kennedy's and Mr McKechnie's departures, twelve other formerKennedys support and administrative staff left at completion. Effects of the Transaction The acquisition of Kennedys will further enhance the scope of Murgitroyd'sexisting Patent and Trade Mark practices. The integration of Kennedys into thecore Murgitroyd business will provide the Group with new corporate clients. Theacquisition is expected to be both earnings enhancing, as a result ofadministrative economies of scale, and cash flow positive immediately. Kennedyswill trade under the Murgitroyd brand with immediate effect. The enlargedGroup's Glasgow operations will all be located in the Group's principal officesin Scotland Street, Kennedys' Aberdeen operations will transfer to Murgitroyd'sAberdeen Office, whilst Kennedys' Newcastle Office will become the Group'stwelfth European office location. The departures of some support staff,combined with the relocations of others to existing Murgitroyd offices inGlasgow and Aberdeen, as well as the Group being released from, and indemnifiedagainst, all historic and future liabilities in connection with Kennedys'Glasgow and Aberdeen offices, will accrue immediate cost savings. Ian Murgitroyd, Group Chairman, commented: "We are delighted to announce that Kennedys has become part of the MurgitroydGroup. We believe that Kennedys represents an excellent fit and the comingtogether of the two practices will add strength and depth to the Group's serviceofferings. The provision of a level of service which exceeds expectationsremains the cornerstone of the enlarged Group and the economies of scale willprovide benefits to our clients, employees and investors alike. WelcomingKennedys' staff to Murgitroyd takes our total staff to over 220 across twelveEuropean offices." David Kennedy, Managing Director of Kennedys Patent Agency Limited, said: "The Board and shareholders of Kennedys have accepted the offer from Murgitroydbecause they believe it delivers immediate benefits to the shareholders, staffand clients of both groups and I anticipate benefits and opportunities accruingfrom being part of a bigger group." For further information, please contact: Keith Young, Murgitroyd Group PLC 07802 951913 David Ovens, Noble & Company Limited 0131 225 9677 Nadja Vetter, Cardew Group 020 7930 0777 Notes to Editors Murgitroyd Group PLC, the holding company of Murgitroyd & Company Limited("Murgitroyd & Company"), a European Patent and Trade Mark Attorney practice,was floated on AIM on 30 November 2001. The practice has European offices inAberdeen, Belfast, Dublin, Edinburgh, Glasgow, London, Milan, Muenster, Munich,Newcastle, Nice and York, and a US Sales Office in Raleigh, North Carolina. 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 engineering,electronics, chemistry and biotechnology with clients ranging from largemulti-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