Restore Regulatory News (RST)

21 Sep 2007 07:02

Mavinwood PLC21 September 2007 Mavinwood plc Acquisition of Peter Cox Limited ("Peter Cox") Mavinwood plc, the AIM Listed support services company, announces that it hasagreed to purchase Peter Cox a leading provider of damp proofing, waterproofing, timber preservation and wall stabilisation for residential, commercialand public properties in the UK. Peter Cox has a network of 14 branches inEngland, Scotland and Wales and employs 210 people. It has built a reputationfor its excellence of service and quality of work. In the year ended 30 November 2006 Peter Cox generated sales of £16m and aprofit before tax of £0.5m. After adjusting for items that are considered to benon recurring the Directors of Mavinwood plc consider the normalised EBITA to be£972,000. Net assets at 30 November 2006 were £26.7m. Subsequent to that balancesheet date Peter Cox underwent a re-organisation and it is expected that the netassets at acquisition will be approximately £2.4m. The consideration for Peter Cox is an initial sum of £6m followed by contingentconsideration of up to £1,050,000 linked to the EBITA performance of PCL for theyear ending 30 November 2007. The contingent consideration is linked to theincrease in maintainable EBITA between £950,000 and £1,100,000. The acquisition is being funded by enlarged bank facilities made available byAllied Irish Banks, p.l.c. and Fortis Bank. Completion is anticipated to be onFriday 28 September 2007. The acquisition is expected to be earnings enhancing in 2008. Kevin Mahoney, chief executive of Mavinwood plc, commented: "Peter Cox is a wellestablished, profitable business with an excellent reputation and a network ofoperations in England Scotland and Wales. Its staff have a great reputation fortheir qualifications and the skill which they bring to their craft. We believethat there are good opportunities for combination with our insured repairbusinesses." Enquiries etc: Mavinwood plcKevin Mahoney, chief executive 020 7661 9650Mike Vincent, finance director 020 7661 9651 Collins StewartAdrian Hadden 020 7523 8353 Threadneedle PRJohn Coles 020 7936 9604 This information is provided by RNS The company news service from the London Stock Exchange