Tanfield Regulatory News (TAN)

26 Apr 2006 13:30

Tanfield Group PLC26 April 2006 Tanfield Group plc Acquisition and Placing The Tanfield Group Plc ("Tanfield" or "the Group") the electric vehicle, aerialaccess and technical assembly manufacturer, today announces the acquisition ofUpRight Inc and certain other business assets which trade under the UpRight nameor are integral to it (together "UpRight") for a cash consideration of €10.5million. UpRight is a manufacturer and distributor of powered aerial platform equipmentand is one of the most widely known names in the global market, with bases inIreland, the USA, and Japan. The Directors believe that this acquisitionsignificantly strengthens the Group's powered access division. The acquisition will be funded by a placing of 50,000,000 new ordinary shares ata placing price of 20p, raising £10 million before expenses. These shares areexpected to be admitted to trading on AiM on 27 April 2006. UpRight UpRight is a significant player in the global powered access market,manufacturing a range of scissor lifts, articulated booms, vertical extendingmasts and sigma arm lifts. Tanfield is acquiring all of the intellectual property rights and all of thetrading assets relating to the aerial access manufacturing activity (existingproducts and those in development). This includes all stock, work in progressand finished goods. Also included in the transaction are distribution and sparessales facilities in the US, UK and Japan. As well as these operations, UpRighthas a global independent distribution network. UpRight has seen its turnover and profits decline in recent years from a high in2000 of sales of over $200 million to currently about $50 million. However, theDirectors believe that the products remain competitive and that the Group willreverse this trend within a short period. The acquisition is highlycomplimentary to Tanfield's existing aerial access product ranges which havegrowing sales and distribution and opportunities exist to exploit cross selling,management synergies and production synergies. Placing Tanfield has conditionally raised £10 million through a placing of new ordinaryshares at a price of 20p. The funds raised will be used: * To pay the consideration and expenses of the transaction; * To pay the expected integration costs; * Additional capital investment; and * To increase the working capital of the enlarged group Following completion, the enlarged Tanfield group is expected to haveapproximately £3.5 million in cash. Roy Stanley, Chief Executive of Tanfield, commented: "I am delighted to announce the acquisition of UpRight, which represents aconsiderable step change in the scale and range of our aerial access offering.It will make us a truly global player in the powered access industry and offersopportunities for the global distribution of our other Group products. The transaction follows in our successful acquisition strategy of identifyingquality, complimentary products to our existing offering which are not beingproperly capitalized on by their current owners. We expect this deal to result in a strong uplift in profitability and to beearnings enhancing on a two-year view. It has been a complicated transaction to complete and I would like to thank ourshareholders for their continued support of Tanfield." For further information: Tanfield Group plc Tel: +44 (0) 1207 521111 Roy Stanley, Chief Executive Daniel Stewart & Co. Tel: +44 (0) 207 776 6550 Ruari McGirr ruari.mcgirr@danielstewart.co.uk This information is provided by RNS The company news service from the London Stock Exchange