Delling Group PLC
11 January 2006
For Release 7:00 am 11 January 2006
DELLING GROUP PLC
The AIM-listed marketing services group
£1.6 million Acquisition in Sweden
Delling Group PLC ('Delling Group'), the AIM listed marketing support services
group, announces that in line with its acquisition strategy, it has exchanged
contracts to acquire n3prenor, a private Swedish document production company.
The total consideration payable of £1.6 million is equivalent to approximately 4
times n3prenor's pre-tax profit for the year ended 30 June 2005.
The acquisition, which is due to complete on 1 March 2006, will be satisfied by
a cash payment of £1.2million funded by a bank loan from a Scandinavian bank. A
further £115,000 shall be paid through an issue of Delling shares based on the
average Delling share price during the month of June 2006. In addition, an
earn-out of £300,000 shall be paid in cash if the total profit of n3prenor
during the first half of 2006 exceeds £600,000.
n3prenor is a privately owned Swedish business and for the year ended 30 June
2005 had a turnover of £2 million and a pre-tax profit of £400,000. Over the
past 5 years n3prenor has consistently had sales over £1.5million and net
margins of at least 20%. n3prenor is a leading niche player involved in the
production of annual reports and other corporate documents particularly for
large listed companies in Sweden. The acquired business has an impressively
strong customer base, which includes Swedish listed companies and household
names such as Nordea, Posten (the Swedish Post Office), Ohrlings
PricewaterhouseCoopers, NCC, Enskilda Securities and Assa Abloy. The Board of
Delling believes that there are substantial cross-marketing opportunities and
excellent potential for Delling to exploit n3prenor's customer base.
Commenting on the acquisition, Aksel Bratvedt, Executive Chairman of Delling
Group, said:
'This acquisition represents an excellent platform in support of Delling Group's
strategic model for strong growth, whilst also exploiting increasing corporate
demand for fully serviced outsourced marketing. I am confident that our growing
acquisition pipeline will lead to both further acquisitions of varying sizes in
the coming months and our continued profitable development.'
For further information please contact:
ENDS
Contact:
Delling Group Plc
Aksel Bratvedt, Chairman Tel: 020 7484 5663
James Robinson, Finance Director Tel: 020 7484 5664
Binns & Co PR Ltd
Tarquin Edwards/Peter Binns Tel: 020 7786 9600
This information is provided by RNS
The company news service from the London Stock Exchange
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