Business
Acquisition of Primary Fluid Holdings Limited
Acquisition of Primary Fluid Holdings Limited.
About this update from Flowtech Fluidpower Plc
[{"type":"text","content":"\n \nRNS Number : 2328O Flowtech Fluidpower PLC 05 August 2014 \n\n\n\n\n\n \n \n \n\n\n\n\n\n\n\nImmediate Release\n\n\n\n\n \n\n\n\n\nFlowtech Fluidpower plc\n(\"Flowtech\" or \"Company\")\nAcquisition of Primary Fluid Holdings Limited\nand\nNotice of Half-Yearly results\n\n\n\n\n \n\n\n\n\nFlowtech Fluidpower plc (AIM:FLO), is pleased to announce the acquisition of Primary Fluid Holdings Limited and its wholly owned subsidiary Primary Fluid Power Limited, for a total consideration of approximately £9.8 million, its first acquisition since admission to AIM in May 2014.\n \nPrimary Fluid Holdings Limited, based in Knowsley, Merseyside (also with a small workshop in South Wales) designs and manufactures hydraulic systems and purifiers, which constitute approximately 65% of turnover, and distributes hydraulic components which constitutes approximately 30% of turnover. It also has a small service and repair business. For the year ended 31 December 2013, turnover was £11.17 million producing EBITDA of £1.22 million and profit before tax of £1.10 million. Net assets at the same date were £5.2 million. Following completion of the acquisition the business will continue to operate from its existing facilities and the current management team will remain with the business; Stephen Merrie who has been with the business since 1987 will remain Managing Director and join Flowtech's operational Board. It is expected that some synergies will be made in the first full year of ownership.\n \nThe consideration of approximately £9.8 million is to be satisfied as to £4.65 million in cash on completion; £1.62 million will be paid on the first anniversary of completion and the balance of £3.5million by the allotment of 2,828,283 new ordinary shares in Flowtech (the \"Consideration Shares\"). The acquisition includes property which is owned by Primary and valued at £1.1million and, at completion, Primary Fluid Holdings Limited will have a net cash position of £1.7million.\n \nApplication has been made for the Consideration Shares to be admitted to trading on AIM and it is expected that admission will become effective and that dealings will occur on 8 August 2014. The vendor has agreed not to dispose of any of the Consideration Shares for a period of 12 months...