Delling Group PLC
20 June 2005
For Release 7:00am 20 June 2005
Delling Group Plc
Overseas Acquisition
Delling Group ('Delling Group' or 'the Company'), the marketing support services
group, announces that it has exchanged contracts to acquire Full Bredde AS, a
Norwegian based subcontractor for delivering printed marketing material, for a
total consideration of £300,000, or approximately three times pre-tax profit.
The acquisition, due to complete on 1 August 2005, will be paid in three
installments: £75,000 in shares based on the market price on 1 July 2005,
£150,000 in cash on 1 August 2005, and the remaining £75,000, to be paid in cash
on 1 August 2006 subject to certain conditions regarding sales performance.
Full Bredde AS, a privately-owned business established in 2002, is a significant
subcontractor in the production of in-store advertising material to consumer
production companies and retail chains in Norway. It has a strong customer base
and extensive contacts with marketing departments. For the year ended 31
December 2004 Full Bredde AS had a turnover of approximately £1.1m, a pre-tax
profit of approximately £110,000 and net assets were £23,000 at 31 December
2004.
The acquired business has a strong customer base. Its assets and key employees
will be fully integrated into Delling Group's current businesses in Norway to
exploit customer demand for a 'one shop' supplier in the marketing support
industry.
Commenting on the acquisition, Geir Lolleng, Chief Operating Officer, Delling
Group, said: 'This acquisition is in line with our strategy of growing
organically and through niche acquisitions in ancillary market sections and it
represents an excellent addition to our business in Norway. The acquisition adds
further revenues, a strong customer base and competence in the procurement of
production services and logistics. The deal has been structured to optimise
shareholder value and avoid unnecessary dilution for current shareholders.'
ENDS
For further information please contact:
Delling Group Plc
Aksel Bratvedt, Chief Executive 020 7010 8210; 077669152
Geir Lolleng, Chief Operating Officer 0207 010 8210; +4670855672
Binns & Co PR Limited
Peter Binns 0207 153 1477
Hannah Sloane 0207 153 1480
This information is provided by RNS
The company news service from the London Stock Exchange
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