Carclo PLC
4 December 2000
CARCLO PLC
Acquisition of Finespark (Horsham) Limited - 'The Alan
Group'
Introduction
Carclo plc, the technical plastics group, announces the
acquisition of Finespark (Horsham) Limited which trades
as the Alan Group. This acquisition represents the next
step in our strategy of building a global technical
plastics group.
Consideration
The consideration for the acquisition is £ 6.9 million
plus the assumption of approximately £1.5 million of debt
and finance leases. The consideration is payable in cash.
A further payment of up to £1.1 million will be made in
the event that the business's Chinese subsidiary achieves
agreed levels of profit growth from the date of
acquisition up until 31 March 2003.
Description of the Business
The Alan Group is a market leader, both in the UK and
mainland Europe, in the manufacture of high quality
precision tooling for teletronics connectors and has a
complimentary technical moulding and assembly facility.
It has three operations in the UK and has invested in a
new state of the art manufacturing facility located in
Shanghai, China. This business has recently been equipped
and is scheduled to commence manufacturing before the end
of the current year.
The Alan Group has approximately 110 employees
predominantly based in Horsham, UK, with an increasing
workforce now based in Shanghai.
Financial Performance
In the year to 31 March 2000, Alan Group had sales of
£7.7 million and earnings before interest and tax of £1.6
million.
The consideration is subject to the Alan Group having net
assets in excess of £2.3 million on completion.
Benefits
The Alan Group is an excellent strategic fit with Carclo
technical plastics. Their market leadership in Europe
compliments the strength of CTP Carrera in North America.
The new Alan Group facility in China will facilitate an
accelerated entry by CTP into the fast growing Asian
market for our products and services.
Commenting on the acquisition, Ian Williamson, chief
executive of Carclo plc said:
'The acquisition of the Alan Group is a further step in
our strategy of building a global technical plastics
group specialising in technical solutions for markets
enjoying strong underlying growth. The combination of CTP
Alan and CTP Carrera will be a strong global player in
precision connector moulding for the data and telecom
markets.'
For further enquiries please contact:
Carclo plc
Ian Williamson, Chief Executive 01924 330 500
Chris Mawe, Finance Director
Golin/Harris Ludgate
Richard Hews 0207 253 2252
Trish Featherstone
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