Business
Disposal of Nightingale Archi
Disposal of Nightingale Archi.
About this update from Tribal Group Plc
[{"type":"text","content":"\n RNS Number : 8972M Tribal Group PLC 01 June 2010 \n \n\n \nTribal Group plc\n \nDisposal of Nightingale Architects Limited\n \n \nTribal Group plc (Tribal), a leading provider of public sector services in the UK and internationally, is pleased to announce the disposal of Nightingale Architects Limited (Nightingale) for cash consideration of up to £13.1m to IBI Holdco Limited, the UK subsidiary of IBI Group, a Canada based international architectural, urban and transportation systems design firm. The disposal follows the announcement in March 2010 that Tribal would explore strategic options for each of its three Support services businesses. \n \nNightingale is a leading architecture practice specialising in the healthcare, education and science markets. The business is based predominantly in the UK and has been established since 1989. It employs approximately 260 staff across 7 offices. \n \nIn the audited accounts for the year ended 31 December 2009, Nightingale had gross assets of £14.1m and it made adjusted operating profit1 of £1.3m on turnover of £17.4m. Nightingale's senior management team will be transferring with the business. The disposal is expected to be dilutive to earnings. \n \nThe cash consideration of up to £13.1 million (which includes the purchase of approximately £2.8 million of cash held within Nightingale at completion) will be used to strengthen the Group's balance sheet and is to be satisfied by:\n· An initial consideration at completion of £8.2m;\n· Deferred consideration of:\no £1.8m payable on 31 December 2010; and\no Further consideration of between £1.1m and £3.1m payable in two tranches in respect of the periods from completion to 30 April 2011, and the following year to 30 April 2012, based on the profit performance of Nightingale over those periods and payable on 1 June 2011 and 2012 respectively or, if later, following agreement of the performance for the relevant periods. \n \nCommenting on the disposal of Nightingale, Peter Martin, Chief Executive of Tribal, said:\n \n\"Tribal's core markets are education, health and government, for which we provide service delivery, advisory and technology solutions and so Nightingale is no longer central to our strategic direction....