Business
RM Acquires SpaceKraft
RM Acquires SpaceKraft.
About this update from Rm Plc
[{"type":"text","content":"\n RM PLC\n01 October 2007\n\n \n 1 October 2007\n\n\n RM acquires specialist education resources provider SpaceKraft\n\nRM announces the acquisition of SpaceKraft Ltd for a consideration of up to\n£3.95m. SpaceKraft is one of the UK's leading suppliers of special educational\nneeds (SEN) and early years products and services. The acquisition brings\nfurther scale to RM's growing Educational Resources business and complements\nSpecial Direct, the Group's existing SEN business.\n\nSpaceKraft has two main areas of activity: the installation of 'sensory\nenvironments', which are used in both mainstream and special schools to provide\nmulti-sensory stimulation for SEN pupils; and the sales and distribution of a\nwide range of specialist SEN / additional needs resources through three\nmail-order catalogues.\n\nFollowing the acquisition, SpaceKraft will retain its own brand and maintain its\nwell-established product development, sourcing and delivery capability. It will\nbe managed as separate entity within RM, reporting through the Group's TTS\nsubsidiary.\n\nSpaceKraft's revenue in the year to June 2007 was £4.85m, with adjusted\noperating profit of £600K. RM is paying an initial cash consideration of £3m;\nfurther consideration of up to £0.95m (in loan notes) over the next two years,\nconditional on the Directors remaining with the business and the achievement of\ncertain performance targets.\n\nCommenting on the acquisition, Tim Pearson, CEO of RM, said:\n\n'It's great news that the SpaceKraft team is joining RM. We've already\nestablished a position in the growing SEN market through our Special Direct\nbusiness; SpaceKraft brings scale, unique products and a well-regarded brand, as\nwell as further specialist knowledge in this area.\n\n'Education Resources is one of RM's chosen focus areas and has grown rapidly\nsince our acquisition of TTS Group in 2004. We're deliberately focusing on areas\nwhere specialist education or technical knowledge will allow us to build a\nprofitable business with loyal customers. The recent acquisition of Dacta is an\nexample of this, and so is our expansion in the SEN market.\n\n'SpaceKraft also fits well with our Building Schools for the Future business.\nSensory environments are often included as part of the specification for\nnew-build schools.'\n\nBruce Todhunter, Managing Director of SpaceK...