Acquisition of Haswell Engineers Ltd

LPA Group PLC 22 June 2000 LPA Group plc 'LPA' Acquisition Acquisition of Haswell Engineers Limited LPA is pleased to announce the acquisition of the entire issued share capital of Haswell Engineers Limited ('Haswell') for a total maximum consideration of GBP 1 million. The consideration is the aggregate of: 90 per cent. of the value of the net assets of Haswell as at completion and a sum equal to the profits of Haswell for each of the periods from completion to 30 September, 2000, 1 October, 2000 to 30 September, 2001 and 1 October, 2001 to 30 September, 2002 subject to a maximum amount of GBP 1 million. At completion GBP 378,274.50, (being 90 per cent. of the value of Haswell's net assets of GBP 420,305.00 as at 31 May 1999) was paid on account of the consideration of which GBP 124,831.52 was satisfied in cash and GBP 253,442.98 satisfied by the allotment and issue to the vendors of 233,588 ordinary shares of 10p each in the capital of LPA. Following completion, completion accounts will be prepared on a basis consistent with previous audited accounts of Haswell. If the net assets of Haswell as at the completion date is more or less than GBP 378,274.50 the consideration will be adjusted upwards or downwards by the amount of the deficiency. The new ordinary shares have been allotted to the vendors fully paid and ranking pari passu with existing ordinary shares of LPA. These shares have been admitted to the Official List of the UK Listing Authority and will commence trading on the London Stock Exchange today. For the year to 31 May 1999, being the date of the last audited balance sheet, Haswell had net assets of GBP 420,305 and achieved profits before tax of GBP 68,000. Haswell, based in Clacton-on-Sea, Essex, is a manufacturer of high quality metal enclosures used in the electronics and engineering industries. Its enclosure manufacturing and painting facilities are superior to and complement the LPA Group's (the 'Group's') existing manufacturing facilities in Saffron Walden. The acquisition of Haswell will expand the Group's capacity to supply enclosures and battery rafts to the rail vehicle industry and will permit the reorganisation of the Group's facilities in Saffron Walden, essential to meeting the anticipated increased demand for the Group's existing rail products. Commenting on the acquisition Peter Pollock, Chief Executive of LPA said: 'The purchase of Haswell is part of the continuing process of growing the LPA Group both organically and by acquisition.' Enquiries Peter Pollock 0788 162 6123 LPA Group plc Ian Dighe 020 7523 5804 Singer & Friedlander