Business
Acquisition
Acquisition.
About this update from Eleco Plc
[{"type":"text","content":"\n Eleco PLC\n15 November 2007\n\n\nFor immediate release 15 November 2007\n\n\n Eleco plc\n\nStatement on current trading and prospects; acquisition of Milbury Systems\nLimited ('Milbury') and its related freehold manufacturing facility for an\naggregate £7,065,000, of which £75,000 will be performance related, and vendor\nplacing of 3,000,000 Ordinary Shares of Eleco plc ('Eleco') at 101p per share.\n\nEleco (ELCO.L), the building systems and construction software group, will hold\nits Annual General Meeting ('AGM') at 12 noon today. At the AGM John Ketteley,\nExecutive Chairman, will say that turnover and profit of both the building\nsystems and software businesses were substantially higher in the first quarter\nthan at the same time last year and that the outlook for the major part of its\nbusiness is buoyant. A separate AGM statement has been released today and is\ncontained in full later in this announcement.\n\nEleco plc is also pleased to announce the £7,065m acquisition of Milbury part\nfinanced by a £3.03m vendor placing with Delta Lloyd Asset Management N.V.*.\n\nA summary of key points of the acquisition follows :\n\nInformation on Milbury\n\n • Founded in 1978 with operations near Bristol and in Lydney,\n Gloucestershire, Milbury produces pre-cast and pre-stressed concrete\n products and provides a comprehensive design, manufacture and installation\n service to its clients.\n • Milbury is an established provider of environmental control products for\n flood prevention and storage tanks in steel and concrete for the water and\n waste management industries.\n • Milbury is also a supplier of security solutions including underground\n parking, fire walls, security and blast walls.\n • Turnover for the nine months ended 30 September 2007 was £6.8m with\n adjusted EBIT of £0.9m and net assets of £1.9m.\n\nRationale\n\n • Complementary to the retaining wall and terracing operations of Eleco's\n subsidiary, Bell & Webster Concrete.\n • Strategic geographical location for Eleco's concrete business enabling it\n to expand into areas where Milbury's lower transportation costs could be\n advantageous.\n • Milbury's agricultural products complement the retaining walls business of\n Bell & Webster Concrete.\n\n\nJohn Ketteley, Executive Chairman of Eleco, commented:\n\n'We are delighted to announce th...