Acquisition of Haswell Engineers Ltd

LPA Group PLC
22 June 2000

 
                             LPA Group plc 'LPA'                              
                             
                                 Acquisition                                  
             
 
  Acquisition of Haswell Engineers Limited                                    
                                        
  LPA is pleased to announce the acquisition of the entire issued share       
  capital of Haswell Engineers Limited ('Haswell') for a total maximum      
  consideration of GBP 1 million. The consideration is the aggregate of: 90   
  per cent. of the value of the net assets of Haswell as at completion and a 
  sum equal to the profits of Haswell for each of the periods from           
  completion to 30 September, 2000, 1 October, 2000 to 30 September, 2001 and 
  1 October, 2001 to 30 September, 2002 subject to a maximum amount of GBP 1  
  million.                                                                    
                                                                              
  At completion GBP 378,274.50, (being 90 per cent. of the value of Haswell's 
  net assets of GBP 420,305.00 as at 31 May 1999) was paid on account of the  
  consideration of which GBP 124,831.52 was satisfied in cash and GBP         
  253,442.98 satisfied by the allotment and issue to the vendors of 233,588   
  ordinary shares of 10p each in the capital of LPA. Following completion,    
  completion accounts will be prepared on a basis consistent with previous    
  audited accounts of Haswell. If the net assets of Haswell as at the       
  completion date is more or less than GBP 378,274.50 the consideration will  
  be adjusted upwards or downwards by the amount of the deficiency.           
                                                                              
  The new ordinary shares have been allotted to the vendors fully paid and    
  ranking pari passu with existing ordinary shares of LPA. These shares have  
  been admitted to the Official List of the UK Listing Authority and will     
  commence trading on the London Stock Exchange today.  
                      
  For the year to 31 May 1999, being the date of the last audited balance     
  sheet, Haswell had net assets of GBP 420,305 and achieved profits before   
  tax of GBP 68,000.   
                                                       
  Haswell, based in Clacton-on-Sea, Essex, is a manufacturer of high quality 
  metal enclosures used in the electronics and engineering industries. Its    
  enclosure manufacturing and painting facilities are superior to and         
  complement the LPA Group's (the 'Group's') existing manufacturing           
  facilities in Saffron Walden.  
                                             
  The acquisition of Haswell will expand the Group's capacity to supply      
  enclosures and battery rafts to the rail vehicle industry and will permit   
  the reorganisation of the Group's facilities in Saffron Walden, essential   
  to meeting the anticipated increased demand for the Group's existing rail   
  products.                    
                                               
  Commenting on the acquisition Peter Pollock, Chief Executive of LPA said:   
  'The purchase of Haswell is part of the continuing process of growing the  
  LPA Group both organically and by acquisition.'                             


  Enquiries                                                                   

  Peter Pollock                                     0788 162 6123
  LPA Group plc                                                               
  Ian Dighe                                         020 7523 5804
  Singer & Friedlander