RM PLC
09 August 2006
9 August 2006
RM acquires specialist education resources supplier Music Education Supplies
RM plc announces that its specialist education resources business, TTS Group
Ltd, has acquired Music Education Supplies Ltd (MES) for a consideration of up
to £1m. MES is a specialist supplier of a wide range of musical instruments,
books and other music education products to primary schools and nurseries. Many
of these products are unique to MES and are highly valued by primary school
music specialists.
Following the acquisition, MES will be merged with TTS. TTS already has a strong
position in the primary school resources market, but had not previously offered
a music supplies catalogue. The addition of MES allows TTS to extend the range
of products it offers to its existing customer base.
MES' turnover in the year to 31 December 2005 was £1.44m, with profit before tax
of £0.14m (not adjusted for normalised Director's remuneration). RM will pay an
initial contribution of £0.8m on completion. Further consideration of up to
£0.2m is payable on 31 March 2007, following the integration of MES' business
and subject to certain performance conditions. MES' current Managing Director,
Ray Mason, will remain with the business during the integration period.
Commenting on the acquisition, Tim Pearson, CEO of RM, said:
'TTS has been a successful acquisition for RM, providing us with both business
growth and a deeper understanding of the requirements of classroom teachers.
Recognising that ICT is becoming increasingly embedded in the day-to-day
activities of classroom teachers, we have recently brought TTS together with our
learning software activities to form a broader education resources division. The
acquisition of MES is a further stage in the development of this business.'
Peter Ellse, Managing Director of TTS, said:
'MES is one of a choice number of real specialist businesses in primary school
and nursery supply. They are widely well regarded for their values of high
levels of research, specialist focus and closeness to the teacher and music
specialist. They make an ideal strategic fit for TTS's vision, and we aim to
invest upon their current achievements to take them to the next level.'
Ray Mason, Managing Director of MES, said:
'TTS shares our commitment to providing teachers with high quality educational
resources that can really make a difference in the classroom - it's a good home,
both for our business and our customers. I was also encouraged to see how being
part of the RM Group has helped TTS retain its existing strengths, whilst also
providing a platform for future growth.'
- Ends -
For further information, please contact:
Phil Hemmings, RM plc 08709 200200
Fiona Laffan/Mark Antelme, Brunswick 020 7404 5959
Notes to Editors:
The RM Group is a leading provider of educational products and services to
schools, colleges and universities, local government and central government
education departments and agencies. Founded in 1973, RM works closely with
educationalists to use new products, processes and technology to improve
teaching and learning and is recognised as a leading innovator in the
educational information and communications technology (ICT) arena.
RM acquired TTS in September 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
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