Cape Completes Acquisition of Australian-based Total Corrosion Control
As previously announced, Cape PLC has completed the acquisition of the Australian based Total Corrosion Control group of companies on August 31, 2007.
In satisfaction of A$20 million of the initial consideration, Cape has today allotted a total of 2,761,287 new ordinary shares ("Initial Consideration Shares") to the vendors at a price of 293.6325 pence per share being the volume weighted average price of Cape's shares over the five business days prior to completion of the acquisition. Application has been made for the Initial Consideration Shares to be admitted to trading on AIM which is expected to take place on September 5, 2007.
In the year to June 30, 2007, the TCC Group's turnover was A$113.6 million (£45.9 million), its earnings before interest, depreciation, tax and amortization were A$14.9 million (£6.0 million) and it generated earnings before interest and tax of A$14.0 million (£5.6 million). The approximate value of the net assets being acquired at completion is A$ 18.2 million (£7.4 million).
Cape's Chief Executive, Martin May, said:
"Cape's acquisition of the TCC Group is a major milestone in the achievement of Cape's international strategic plan. It will provide a stable platform from which Cape can continue to develop its existing Far East/ Pacific Rim businesses, extend its footprint in the region and realize significant synergies by working closely together with the management team of the TCC Group.
Part of Cape's growth strategy is to relocate considerable quantities of scaffolding equipment to Perth, from the major Sakhalin Island oil and gas project in Russia where it will shortly be no longer required, to help expand TCC's presence in the Australian scaffold market.
Cape's international strengths will supplement TCC Group's extensive experience
in the Australian market. The TCC Group's established presence in Australia's
booming resources sector offers Cape an entry into a substantial growth sector."
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