Rm Regulatory News (RM.)

1 Oct 2007 09:00

RM PLC01 October 2007 1 October 2007 RM acquires specialist education resources provider SpaceKraft RM announces the acquisition of SpaceKraft Ltd for a consideration of up to£3.95m. SpaceKraft is one of the UK's leading suppliers of special educationalneeds (SEN) and early years products and services. The acquisition bringsfurther scale to RM's growing Educational Resources business and complementsSpecial Direct, the Group's existing SEN business. SpaceKraft has two main areas of activity: the installation of "sensoryenvironments", which are used in both mainstream and special schools to providemulti-sensory stimulation for SEN pupils; and the sales and distribution of awide range of specialist SEN / additional needs resources through threemail-order catalogues. Following the acquisition, SpaceKraft will retain its own brand and maintain itswell-established product development, sourcing and delivery capability. It willbe managed as separate entity within RM, reporting through the Group's TTSsubsidiary. SpaceKraft's revenue in the year to June 2007 was £4.85m, with adjustedoperating profit of £600K. RM is paying an initial cash consideration of £3m;further consideration of up to £0.95m (in loan notes) over the next two years,conditional on the Directors remaining with the business and the achievement ofcertain performance targets. Commenting on the acquisition, Tim Pearson, CEO of RM, said: "It's great news that the SpaceKraft team is joining RM. We've alreadyestablished a position in the growing SEN market through our Special Directbusiness; SpaceKraft brings scale, unique products and a well-regarded brand, aswell as further specialist knowledge in this area. "Education Resources is one of RM's chosen focus areas and has grown rapidlysince our acquisition of TTS Group in 2004. We're deliberately focusing on areaswhere specialist education or technical knowledge will allow us to build aprofitable business with loyal customers. The recent acquisition of Dacta is anexample of this, and so is our expansion in the SEN market. "SpaceKraft also fits well with our Building Schools for the Future business.Sensory environments are often included as part of the specification fornew-build schools." Bruce Todhunter, Managing Director of SpaceKraft, added: "SpaceKraft has reached the stage where it needs to be part of a bigger group ifit is to achieve its growth potential. RM shares our education focus and offersoperational skills in the areas of distribution and online selling. We lookforward to further success as part of the RM Group." For further information, please contact:Mike Greig/Phil Hemmings, RM plc 08450 700300Mark Antelme/Raphael Mazet, Brunswick 020 7404 5959 Notes: Founded in 1973, the RM Group is a leading provider of educational products andservices to schools, colleges & universities, local government, and centralgovernment education departments & agencies. RM works closely witheducationalists to create new products, processes and technology which improveteaching and learning. RM is listed on the main market of the London StockExchange under the symbol RM.L. SpaceKraft was established in 1992. It employs 45 people and is based inShipley, Yorkshire. RM acquired TTS Group Ltd, a specialist distributor of high quality curriculumresources, in September 2004. Since its acquisition by RM, TTS has continued togrow both turnover and profit, and has recently moved into a new distributioncentre in Nottinghamshire. This information is provided by RNS The company news service from the London Stock Exchange