Acquisition

7 Aug 2006 07:37

Formation Group PLC07 August 2006 FORMATION GROUP PLC Acquisition of Bermitz Sports Advertising Limited Formation Group plc ("Formation" or "the Group"), an integrated sportsmanagement and marketing business is pleased to announce that its wholly-ownedsubsidiary, Fox Sports Limited ("Fox"), has today agreed to acquire the entireissued ordinary share capital of Bermitz Sports Advertising Limited ("Bermitz"). Fox has agreed to acquire Bermitz, a business engaged in the provision ofoutdoor sports advertising and corporate hospitality, for the followingconsideration, payable on completion: • an initial consideration of £192,500; and • a consideration for the purchase of audited net assets of Bermitz as at 31 July 2006. The unaudited net asset value of Bermitz as at that date was£256,179. Bermitz was established in 2000 by Richard Bermitz as a perimeter advertisingconsultancy, and is based in Whitefield, Manchester. The business managesperimeter rights on behalf of four FA Premier League clubs, several major RugbyLeague Finals as well as working at numerous other sporting events. Perimeter advertising Bermitz co-ordinates signage management, banners and all display requirementsfor sports events, together with allocating teams to project manage the eventprogramme. In addition, Bermitz provides specific advice to its clients onartwork requirements and how best to adapt corporate advertising to suit asporting arena. Sports advertising Bermitz provides specific consultancy and advice to corporate brands on theiradvertising, promotions and marketing requirements in the sporting arena. Italso provides solutions to its clients including specific marketing campaigns,measurement of media exposure and comparative evaluation, all signage design andadvice, planning services and related promotional activity. For the 12 months ended 31 July 2006, Bermitz had unaudited turnover of £1.68million and a pre tax profit of £82,846. At 31 July 2006, the unaudited grossassets of Bermitz were £678,303. The acquisition of Bermitz will complement the Company's existing SportsMarketing Division and will increase the scale of this division with an increasein the range of perimeter advertising solutions that can be offered to theGroup's clients. In addition to the existing static perimeter and advertisingoptions currently offered by Fox, Richard Carpenter Associates and SponsormaticApS (all subsidiaries of the Group), the acquisition of Bermitz will provideincreased opportunities for synergy and cross selling with other Groupdivisions. Neil Rodford, Chief Executive Formation Group Plc commented: "I am delighted to announce the acquisition of Bermitz which adds further scaleto our Sports Marketing Division and increases the perimeter advertisingsolutions offered by the Group. The acquisition of Bermitz will also createcross-selling opportunities between the Group's other divisions." Richard Bermitz said: "I am delighted to join what is undoubtedly one of the leading sports marketingand brand management companies in the UK and look forward to the challengesahead". For further information, please contact: Neil Rodford, Formation Group plc Tel: 01625 539832David Youngman, WH Ireland Limited Tel: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange