Business
Acquisition and Placing
Acquisition and Placing.
About this update from Tanfield Group Plc
[{"type":"text","content":"\n Tanfield Group PLC\n26 April 2006\n\n\n Tanfield Group plc\n\n Acquisition and Placing\n\nThe Tanfield Group Plc ('Tanfield' or 'the Group') the electric vehicle, aerial\naccess and technical assembly manufacturer, today announces the acquisition of\nUpRight Inc and certain other business assets which trade under the UpRight name\nor are integral to it (together 'UpRight') for a cash consideration of €10.5\nmillion.\n\nUpRight is a manufacturer and distributor of powered aerial platform equipment\nand is one of the most widely known names in the global market, with bases in\nIreland, the USA, and Japan. The Directors believe that this acquisition\nsignificantly strengthens the Group's powered access division.\n\nThe acquisition will be funded by a placing of 50,000,000 new ordinary shares at\na placing price of 20p, raising £10 million before expenses. These shares are\nexpected to be admitted to trading on AiM on 27 April 2006.\n\nUpRight\n\nUpRight is a significant player in the global powered access market,\nmanufacturing a range of scissor lifts, articulated booms, vertical extending\nmasts and sigma arm lifts.\n\nTanfield is acquiring all of the intellectual property rights and all of the\ntrading assets relating to the aerial access manufacturing activity (existing\nproducts and those in development). This includes all stock, work in progress\nand finished goods. Also included in the transaction are distribution and spares\nsales facilities in the US, UK and Japan. As well as these operations, UpRight\nhas a global independent distribution network.\n\nUpRight has seen its turnover and profits decline in recent years from a high in\n2000 of sales of over $200 million to currently about $50 million. However, the\nDirectors believe that the products remain competitive and that the Group will\nreverse this trend within a short period. The acquisition is highly\ncomplimentary to Tanfield's existing aerial access product ranges which have\ngrowing sales and distribution and opportunities exist to exploit cross selling,\nmanagement synergies and production synergies.\n\nPlacing\n\nTanfield has conditionally raised £10 million through a placing of new ordinary\nshares at a price of 20p. The funds raised will be used:\n\n * To pay the consideration and expenses of the transaction;\n * To pay the expected integration costs;\n...