Acquisition of Euro Ops SRL France

RNS Number : 6421X

Westminster Group PLC

01 May 2019

 

Westminster Group Plc

('Westminster', the 'Group' or the 'Company')

Acquisition of Euro Ops SRL France

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide is pleased to announce the acquisition of the entire issued share capital of French aviation security and support services company Euro Ops SRL ('Euro Ops') along with the business and assets of Euro Ops International SRL ('Euro Ops Int.').  Highlights of the acquisition include:

·     Acquisition provides Westminster with a French based subsidiary with increased access to Francophone countries

·     Strategically structured deal - acquiring non-trading sister company which provides the benefits of the business activities of Euro Ops Int. without any past incumbrances

·     Operates in aviation sector expanding Westminster's geographic coverage

·     Expands Westminster's business clients and contacts in the sector

·     Additional revenue streams to the Group

·     Euro Ops owner and director highly qualified and well respected in the sector

·     Expected maximum cost of £30k, subject to working capital requirements of the business

Introduction to Euro Ops:

Euro Ops is a French based aviation security and support services company which, through its sister company, Euro Ops International (also trading as ICare), provides aviation support services such as Airport Security, Aircrew Management, Humanitarian Logistics, Operations & Dispatch, Ground Handling etc. The business operates primarily in emerging markets particularly in Francophone Africa providing humanitarian assignments and is responsible for sending teams all over the world to assist the UN and NGO's.

The business was established in 2002 by managing Director, Vincent Toscani. Vincent is well known to the Company and has provided services to it in the past. With over three decades of experience in the Aviation environment Vincent is well-respected and highly qualified within the aviation sector holding, amongst other things, the IATA Aviation Security Operation Diploma and is an ICAO AVSEC Instructor and National Inspector.

More information on Euro Ops may be found on their website https://www.euro-ops.com  

The Transaction:

Euro Ops itself has minimal trading with insignificant assets and has no incumbrances other than a Directors Loan Account which is being satisfied as part of the consideration. The consideration payable is €20,000 Euros to include working capital. Euro Ops will acquire the business and assets of Euro Ops Int. and become operational retaining the Euro Ops name within the Group. Under the acquisition agreement all future contracted business and revenues, previously conducted though the sister businesses, will now be conducted through Euro Ops. Euro Ops Int.'s turnover for the year ended 31 December 2017 was approximately €258k.

The acquisition costs have been funded from the Company's existing resources.

Rationale for Acquisition:

The acquisition of Euro Ops not only provides Westminster with a French base but also expands the Company's experienced and qualified aviation management team.

A French based operation is strategically important for the Company enabling better access to Francophone countries, particularly in Africa, which offer considerable business opportunities for Westminster. The French office will also complement our German operation providing the Company with a broader European footprint.

Euro Ops is a small company, but it provides Westminster with new customers and an additional revenue stream with exciting growth potential whilst Vincent Toscani himself brings additional skills, contacts, and access to contracting manpower to the Group.

Commenting on the acquisition of Euro Ops, Peter Fowler, Chief Executive of Westminster Group, said:

"I am delighted to be able to announce the acquisition of Euro Ops. We have been exploring ways to develop the Francophone market for some time and the acquisition of Euro Ops now provides us with an ideal opportunity to grow our business in such regions, both from Euro Ops existing business activities and also through the expansion of Westminster's airport and managed services business.

"I am equally delighted that Vincent Toscani will remain with the business. Vincent is a knowledgeable and well-respected operator within the sector and is a valuable addition to our airport security management team and will help drive the business forward."

Commenting on joining Westminster, Vincent Toscani, founder of Euro Ops said:

"Having provided services to Westminster in the past I have always been impressed by their professionalism and I am now very happy to be part of the Group. My team and I are excited about growing our business and delivering new business opportunities given the reputation, experience and professional support of Westminster."

Update on final adjustments to 2018 results:

As noted in the Company's RNS of 29 January 2019, the Company's trading result for the year ended 31 December 2018 remained subject to various potential adjusting matters such as consolidation of the recent Keyguard acquisition, revision of accounting estimates and the potential collection of a long-term outstanding debt currently being pursued. The Company will provide a further update once these matters, which are nearing conclusion, have been finalised.

Market Abuse Regulation (MAR) Disclosure:

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information please contact:

Westminster Group Plc	Media enquiries via Walbrook PR
Rt. Hon. Sir Tony Baldry - Chairman
Peter Fowler - Chief Executive Officer
Mark Hughes - Chief Financial Officer
S. P. Angel Corporate Finance LLP (NOMAD & Joint Broker)
Stuart Gledhill	020 3470 0470
Caroline Rowe
SVS Securities PLC (Joint Broker)
Elliot Hance	020 3700 0100
Walbrook (Investor Relations)
Tom Cooper	020 7933 8780
Paul Vann	0797 122 1972
	[e-mail]

Notes:

Westminster Group plc is a specialist security and services group operating worldwide via an extensive international network of agents and offices in over 50 countries.

Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long-term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manpower, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue-chip commercial organisations.

 

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