WYG Regulatory News (WYG)

28 Mar 2006 07:10

White Young Green PLC28 March 2006 White Young Green PLC 28 March 2006 White Young Green PLC Acquisition of Tweeds Limited White Young Green PLC, consultant to the built, natural and social environment,is pleased to announce that it has acquired Tweeds Limited ("Tweeds"), aprivately owned multi-disciplinary construction consultancy based in the UK. Theinitial consideration was £11,000,000, being £7,105,000 in cash, £245,000 inloan notes and £3,650,000 satisfied by the issue of 970,023 ordinary shares inthe share capital of White Young Green (the "Consideration Shares"). Additionalconsideration of up to a maximum of £1,250,000 is payable (in either ordinaryshares or cash at White Young Green's discretion) if certain performancecriteria are met in the first year of trading under White Young Green'sownership. Tweeds is a multi-disciplinary construction consultancy company, offering costmanagement, project management, building surveying and health and safetyservices throughout the UK. It employs 150 staff operating from six offices inLondon, Liverpool, Manchester, Birmingham, Mold and the Isle of Man. Tweeds'revenues are derived approximately 75 per cent. from the private sector andapproximately 25 per cent. from the public sector. Its clients includemulti-national companies, central and local government, development corporationsand private developers, as well as small and medium-sized enterprises. Costconsultancy services accounts for approximately 60 per cent. of Tweed'srevenues. Tweeds was founded in 1952 and operated as a partnership until July 2003. Eachof the 9 senior directors of Tweeds has signed contracts of employment with theWhite Young Green group. For the year ended 30 June 2005, Tweeds reported turnover of £10.7m and pre-taxprofit of £1.3m, before charging non-recurring remuneration and interest chargesin the year of £1.15m. As at 30 June 2005, Tweed's gross assets were £5.9m. The acquisition of Tweeds is in line with White Young Green's stated strategicobjective of expanding into cost consultancy. The Board believes that thisacquisition will enable White Young Green to generate incremental revenue growthand increase efficiency as a consequence of the following features: • It introduces cost consultancy skills to White Young Green's range of services available to existing clients in the UK;• It broadens White Young Green's project management portfolio into the private sector;• It provides White Young Green's other business units with potential access to an enlarged client base;• It increases efficiency by strengthening White Young Green's existing management services team; and• It provides a platform for further expansion in cost consultancy. Application has been made for the Consideration Shares to be admitted to theOfficial List of the Financial Services Authority and to trading on the LondonStock Exchange plc's market for listed securities. Dealings are expected tocommence on 31 March 20061. John Purvis, Chief Executive commented: "This acquisition is a significant step forward in the ongoing development ofWhite Young Green and is expected to be earnings enhancing in its first fullyear of contribution. Tweeds is a successful, dynamic and broadly based costconsultancy with an excellent reputation for service delivery and client care.It introduces a key new complementary skill to our current portfolio throughoutthe UK and will therefore significantly enhance our ability to develop strategicpartnerships with our clients in the future." Press Enquiries: John Purvis, Chief ExecutiveBob Hartley, Finance DirectorWhite Young Green PLC Tel: (0113) 278 7111 Tim Anderson / Rebecca Skye DietrichBuchanan Communications Tel: (020) 7466 5000 Notes to editors • 1 The Consideration Shares are not entitled to the interim dividend declared today by White Young Green and accordingly a separate line of stock has been created to accommodate this which will cease to exist following the interim dividend record date on 19 April 2006.• White Young Green was advised by N M Rothschild & Sons Limited in connection with the Acquisition. NM Rothschild & Sons Limited is acting exclusively for White Young Green and noone else in connection with the matters referred to in this announcement and itwill not be responsible to anyone other than White Young Green for providingprotections afforded to its clients or for providing advice in relation to thematter referred to herein. This information is provided by RNS The company news service from the London Stock Exchange