RHL.L Regulatory News (RHL)

31 Jan 2007 07:02

Redhall Group PLC31 January 2007 For Immediate Release January 31 2007 Redhall Group plc ("Redhall" or the "Group") Acquisition of Steels Engineering Services Limited and Steels Engineering and Design Limited, and Vendor Placing of 1,128,032 Ordinary Shares Redhall Group plc, the specialist engineering support services group, todayannounces the acquisition of Steels Engineering Services Limited and SteelsEngineering Design Limited ("the Steels businesses" or "Steels") for a totalconsideration of £2.1m. The consideration is to be settled primarily by a vendor share placing of1,128,032 Ordinary Shares at a Placing Price of 180p per share to raise £2m netof expenses, with the balance payable in cash. The acquisition is conditional upon admission of the new Ordinary Shares totrading on AIM. Application for Admission has taken place and Admission isexpected on 1 February 2007. Highlights of the Acquisition • First acquisition for Redhall under new management in line with stated strategy • Profitable bolt-on acquisition to the current Redhall business • Increases Redhall's penetration into highly regulated nuclear facilities • Enhances Redhall's nuclear and non-nuclear engineering and design capabilities • Potential for increased manufacturing opportunities for Booth Industries and Jordan Manufacturing The Steels businesses were established in 1998 through an MBO from DeutscheBabcock. Steels has offices at Billingham in Teesside and Reading in Berkshire,and employs 80 people and provides a range of design and engineering services tothe nuclear, power generation, defence, pharmaceutical and petrochemicalsectors, which complement Redhall's existing capabilities. Steels is currently a key term contractor for specialist nuclear projects withinthe high security radiological areas of AWE Aldermaston where it has had apresence for over 10 years. AWE Aldermaston is the headquarters of the AtomicWeapons Establishment operations and covers approximately 750 acres inBerkshire. As a specialist contracting business in the nuclear industry, Steels fits theacquisition criteria set out by the Board. For the year ended 30 September 2006, the Steels businesses had turnover of £4.8million and £0.2 million profit before tax and parent company managementcharges. Currently the Steels order book stands at over £6 million. Commenting on the acquisition, David Jackson, Executive Chairman of Redhall,said: "I am excited to announce this acquisition, the first since I have been atRedhall, as Steels provides us with a enhanced footprint in the nuclearindustry. Steels is a nuclear specialist with a long successful history ofworking at AWE Aldermaston which has been a key target client. I am pleasedthat the Steels management team have chosen to join Redhall to help usaccelerate the growth of our nuclear engineering activities." For more information please contact: Redhall Group plc Tel: +44 (0)1924 385 386David Jackson, Chairman and Chief ExecutiveSimon Foster, Deputy Chief Executive Buchanan Communications Tel: +44 (0) 20 7466 5000Tim Anderson / Isabel Podda / James Strong This information is provided by RNS The company news service from the London Stock Exchange