Business
Acquisition
Acquisition.
About this update from Spaceandpeople Plc
[{"type":"text","content":"\n RNS Number : 9133K SpaceandPeople PLC 28 April 2010 \n\nSpaceandPeople plc (\"SpaceandPeople\" or the \"Company\")\n Proposed acquisition of Retail Profile Holdings Limited\nSpaceandPeople (AIM: SAL), the experiential marketing location and media sales group is pleased to announce that it has conditionally agreed to acquire the entire issued share capital of Retail Profile Holdings Limited (\"RPH\"), the holding company of Retail Profile Europe Limited (\"Retail Profile\") for £6.3 million (the \"Acquisition\").\nThe consideration payable comprises the issue of 5,824,000 ordinary shares, £1.53 million floating rate loan notes and £1.128 million cash to be financed through the placing of 1,935,484 shares at 62 pence per share (the \"Placing\"). \nRetail Profile is one of the UK's leading operators of Retail Merchandising Units (\"RMUs\") and draws on relationships with more than 500 merchants who trade from RMUs in over 34 shopping centres. Retail Profile was incorporated in 2004 and currently owns and operates over 200 RMUs in the UK and has also successfully established operations in Russia under a long term franchise agreement with Retail Profile Russia. Retail Profile Russia has established itself as a leading operator in Russia with over 200 units across 13 MEGA shopping centres from Moscow to Novosibersk operated by MEGA, one of Russia's leading mall operators. \nThe audited statutory accounts of Retail Profile (formerly called Amery Holdings III (RPEL) Limited) for the year ended 31 December 2009 showed revenues of £5.1 million generating profits before taxation of £0.5 million and had net assets of £0.9 million at 31 December 2009.\nThe Directors believe that the acquisition has a compelling strategic and financial rationale and provides an attractive opportunity to accelerate further growth. Key benefits arising from the acquisition include:\n· Earnings enhancing: The Directors are of the opinion that the Acquisition will be earnings enhancing and that the synergistic benefits will lead to further improvement in the performance of the enlarged group; \n· UK business development: UK property-owners are increasingly seeking a single provider for both RMUs and promotions. In anticipation of the Acquisition, the directors of both companies are pl...