ATA Group PLC
11 October 2000
Acquisition of Catalis Group Limited
ATA Group plc (ATA), a human resource support services group
which provides employment solutions and training services,
announces that it has conditionally agreed to acquire the
whole of the issued share capital of Catalis Group Limited
(Catalis). Catalis is a provider of training services and
carries out audits of training standards on behalf of the
Railway Industry.
The initial consideration of £1.35 million is payable in cash.
In addition, the Company has agreed to ensure that Catalis has
the necessary resources to repay a medium term loan, including
interest, amounting to £650,000 in total. If the profits
before taxation of Catalis for the period ending 31 March 2001
are less than £310,000, the vendors of Catalis have undertaken
to repay ATA a sum of up to £416,000. Deferred consideration,
of up to £939,000 will be payable, dependent on the profits
before taxation of Catalis during the period from 1 April 2000
to 31 March 2001. The deferred consideration will be
satisfied either by cash or by the issue and allotment of new
ordinary shares in ATA based on a multiple of profits after
taxation of Catalis, less the initial consideration and the
amount of the medium term loan that has been repaid.
Catalis operates through two wholly owned subsidiaries -
Catalis Rail Training Limited (Catalis Rail Training) and
Rail Training Audit Services Limited (RTAS).
The College of Railway Technology Limited, subsequently
renamed Catalis Rail Training, was the subject of a management
buy-out as part of the privatisation of British Rail before
being sold to Catalis Group Limited in 1997. It has an
unrivaled signaling equipment, instructor base and reputation
and is a major provider of infrastructure based technical
training to the Railway Industry. Catalis is the largest
independent provider of Competence Assurance and Training and
Development Services across a complete range of skills
required within in the new Railway Industry. Catalis occupies
substantial conference and training facilities in Derby and
has recently made good progress in encouraging business from
outside bodies. RTAS was established in 1999, with the direct
support of Railtrack to audit the standards of occupational
competence in safety critical areas.
For the year ended 31 March 2000, Catalis had turnover of
£4.84 million and operating profit of £29,000. At 31 March
2000, Catalis had net assets of £0.37 million.
To satisfy the initial cash consideration, Teather & Greenwood
Limited (Teather & Greenwood) has, on behalf of ATA,
undertaken to place new ordinary shares of 1 pence each with
institutional and other investors.
Commenting on this acquisition, Bill Douie, Chairman, said:
'The acquisition of Catalis is in accordance with ATA's
strategy of extending its exposure to training in the
Corporate sector. We believe that Catalis is an excellent fit
with ATA as, in addition to providing us with immediate access
to a growing area of the UK economy and one in which the
government is committed to provide additional funding, it will
enable ATA to expand its current activities into a broader
arena. We believe that the cash generative nature of ATA will
provide the necessary resources to maximise the expansion and
development of Catalis and we look forward to working with our
new colleagues to achieve this.'
'I am happy to reaffirm the confidence I expressed in the
interim statement. Trading continues positive and up to
directors' expectations and I am pleased to announce that our
interactive recruitment website is now live.'
A circular from the Chairman detailing further terms of the
acquisition will be sent to shareholders in due course.
Enquiries:
ATA Group plc
Bill Douie, Chairman 0117 924 1600
Clive Chapman, Chief Executive
Teather & Greenwood Limited
Rick Thompson, Director 020 7426 9073
College Hill
Giles Cooper 020 7457 2020
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