Radstone Technology PLC
9 December 1999
Radstone Technology PLC ('Radstone' or 'the Group')
Acquisition of Kemitron Manufacturing ('Kemitron') for
approximately £4 million
Vendor placing of 2,126,916 Ordinary Shares at 122p each.
Radstone Technology PLC announced today that it has entered
into an agreement to acquire the business and assets of the
Kemitron Manufacturing division of Kemitron PLC ('Kemitron
Manufacturing'), for a total cash consideration of up to £4.0
million.
The consideration will be satisfied as to £2.595 million in
cash by the allotment of 2,126,916 ordinary shares of 12.5p
each ('Placing Shares') all of which are to be placed with
financial institutions at 122p each. The consideration will
be adjusted, on a pound for pound basis, if net assets at
completion are less than £1.25 million. Completion is
expected to take place on 10 December 1999.
Kemitron Manufacturing, a division of Kemitron PLC, is focused
on state- of-the-art electronic assembly and testing and will
be merged with Foundation Technology, Radstone's subsidiary
which provides surface mount assembly services. Kemitron
Manufacturing will provide the Group with greater purchasing
power and increased geographical coverage and is expected to
be earnings enhancing in the first full year following
acquisition.
Kemitron Manufacturing is based in Hawarden, North Wales and
achieved a contribution of approximately £1.4 million on
turnover of £12.2 million in the fifteen months ended 31 March
1999. There are no pre- tax numbers available as Kemitron
Manufacturing is a division of Kemitron PLC and there is no
separate apportionment of certain overheads. Similarly there
is no separate balance sheet, but the net assets of Kemitron
Manufacturing as at 31 March 1999 are estimated to be £0.85m.
Application has been made for the Placing Shares to be
admitted to the Official List and it is expected that dealings
will commence on 10 December 1999.
Charles Paterson, Radstone Group Managing Director, commented:
'We are delighted to bring Kemitron Manufacturing into the
Radstone Group. The combination of Foundation Technology and
Kemitron Manufacturing strengthens our operational resilience
and capabilities in contract electronic manufacturing,
improves yet further our ability to respond quickly to
customer needs and offers us greater purchasing power.
'Kemitron Manufacturing is a very strong business and will be
of great benefit to the Group as we continue to build on the
substantial progress we have made over recent years.'
For further information:
Radstone Technology PLC Tel: 01327 359444
Charles Paterson, Group Managing Director
Jeff Perrin, Finance Director
Square Mile Communications Tel: 0171 601 1000
Susan Ellis or Stephanie Smart
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