Acquisition of SRS Holdings L

RNS Number : 8874X

Goodwin PLC

30 June 2008

 



Goodwin PLC ('Goodwin')

30th June 2008

Acquisition of SRS Holdings Limited

Goodwin, the mechanical and refractory engineering group, announces the acquisition of the entire share capital of SRS Holdings Limited (registration number 4666689) ('SRS Holdings') a holding company for Specialist Refractory Services Limited ('SRSL') and its associated overseas subsidiaries.

The benefits to Goodwin will be greater utilisation of its manufacturing facilities and wider product representation in the high growth GDP countries leading to increased sales and greater efficiency.

The principal activities of SRSL include the making of powders for the investment jewellery casting market and the industrial lost wax casting industry.  The total consideration of £6.0m comprises an immediate cash payment of £3.2m and a payment of £2.8m satisfied by the issue of loan notes to the vendors unconditionally repayable in June 2011.

SRS Holdings is a non trading holding company and does not produce consolidated accounts.  SRS Holdings directly owns 100% of the issued share capital of Specialist Refractory Services Limited (a company incorporated in the UK), and 49% of Jewellery Plaster Limited (a company incorporated in Thailand).  SRS Holdings also indirectly owns 51% of SRS (Guangzhou) Plaster Limited (a company incorporated in the People's Republic of China).  Summary audited financial data for each of these three companies is set out below:

	Sales	Pre-tax Profits	Gross Assets	Year End Reported*
	£000's	£000's	£000's
Specialist Refractory Services	4,396	158	1,836	31st March 2008
Jewellery Plaster Limited	2,089	607	1,773	31st Dec 2007
SRS (Guangzhou) Limited	1,602	461	1,208	31st Dec 2007
	8,087	1,226	4,817

* The accounting reference dates shown relate to the audited accounts for those years

SRS Holdings' Managing Director Mr J Guy Davis will become a joint managing director, and SRS Holdings' sales director Mr Huw Davis will become a Sales Director, each within Goodwin's refractory companies.  Messrs John, Richard, Simon and Bernard Goodwin and Dr Mike Palin will be appointed directors within the acquired SRS Holdings group.

John Goodwin, Chairman, said:

'This deal is about resource and integration, with both groups benefitting from each others' skills.  Customers will benefit from economies of scale and from a combination of independent research and development enabling those areas with high GDP to be better served in the coming years.'

Enquiries:

Goodwin PLC            t: [phone]

John Goodwin, Chairman

 

END

 

 

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