2 Jul 2008 07:00
FOR IMMEDIATE RELEASE 2 July 2008
Northbridge Industrial Services Plc.
("Northbridge" or "The Company")
ACQUISITION OF THE REMAINING 49% OF THE SHARE CAPITAL
OF RDS (TECHNICAL) LTD
Northbridge Industrial Services Plc, the industrial services and rental company, is pleased to announce the acquisition of the remaining 49% of the issued share capital of RDS (Technical) Ltd. ("RDS") that it does not already own, for a total consideration of £1,150,000.
RDS is a Jersey registered company which conducts the majority of its activities through a branch office in Baku, Azerbaijan. Its principal business is to provide generators and associated equipment by way of hire, sale and service to the oil and gas industry in the Caspian region. It was formed in 1994 by Steve Armstrong, the majority shareholder of RDS following the break up of the former Soviet Union and the establishment of the independent state of Azerbaijan. It has been the agent for Crestchic in the area since 2001.
The initial purchase by Northbridge of 51% of the shares was completed on the 18th September 2007 for a consideration of £650,000. This represented 51% of the net assets as at 31 March 2006.
Northbridge had the option to purchase the remaining 49% of RDS based on the accounts to the 31 March 2008. The price paid was determined by a multiple of the audited profits before taxation of RDS for the year ending 31 March 2008, this was subject to a maximum price for 100% of RDS of £1,800,000. The maximum price would be paid if profits reached £328,000 or above.
The profits of RDS reached £425,000 in the year to 31 March 2008 and therefore the maximum further consideration of £1,150,000 was paid.
The net assets at 31 March 2008 were £1,976,674 which included cash balances of £1,102,205.
The remaining shares in RDS were acquired by Northbridge (Middle East) FZE ("NME"), a wholly owned subsidiary of Northbridge, which has been established in the Jebel Ali Free Zone in Dubai, UAE.
In addition NME has also completed a transaction to acquire trading premises in the Dubai freezone at total cost of £1,440,000, (£720,000 of which is deferred to June 2009). The acquisition of these premises will help accelerate Northbridge's strategy to establish an oil and gas services business in the Middle East and Caspian region with a broader range of equipment available for hire and sale.
Consideration for both of these transactions has been paid out of the Group's existing banking facilities
About Northbridge:
Northbridge Industrial Services was incorporated for the purpose of acquiring companies that hire and sell specialist industrial equipment supplying a non-cyclical customer base including utility companies, the public sector and the oil and gas industries. In particular it will seek to acquire specialist businesses that have the potential for expansion into complete outsourcing providers.
For further information
Northbridge Industrial Services Plc.
Eric Hook, Chief Executive 07702 831110
Charles Stanley Securities, Nominated Adviser
Mark Taylor 020 7149 6000
Buchanan Communications
Charles Ryland / James Strong 020 7466 5000