The Vitec Group PLC
07 November 2006
Date: 7 November 2006
The Vitec Group plc
Acquisition of Tomcat
Introduction
The Vitec Group plc ('Vitec' or the 'Group') announces that it has acquired
Tomcat Global Corporation ('Tomcat'), a leading US manufacturer of aluminium
structures for live events, for an initial cash consideration of US$14.5 million
(£7.6 million) and deferred cash consideration of up to US$8.3 million (£4.4
million) conditional upon future profitability targets (the 'Acquisition'). The
Acquisition has been funded from existing resources and is expected to be
slightly earnings enhancing in the financial year ending 31 December 2007 (see
note 1).
Commenting on the Acquisition, Gareth Rhys Williams, Chief Executive of Vitec,
said:
'The Board believes that Tomcat, with its leading presence in the live event
market, especially in the United States, and its high quality brand image, is a
highly complementary fit with our existing European based staging structures
business, Litec. With the additional benefits of shared sourcing in Europe, the
acquisition has the potential to accelerate growth and generate attractive
returns for the Group's shareholders. We look forward to working with Tomcat in
the future.'
Information on Tomcat
Tomcat Global comprises Tomcat and Brilliant Stages. Tomcat was founded in 1987
by its current owner, Mitch Clark, who will continue with the business. Today it
has over 140 employees at sites in Midland, Texas with additional operations in
Mexico and in the UK supplying both premium standard and custom aluminium truss
systems, principally for the entertainment and exhibition industries. Brilliant
Stages, based in the UK, is a leading supplier of custom effects and accessories
for staged events. Tomcat and Brilliant Stages have undertaken projects for a
wide variety of live events for customers such as the Rolling Stones, Pink
Floyd, Robbie Williams and U2. For more information, see www.tomcatglobal.com
In the year ended 31 December 2005 Tomcat generated adjusted consolidated profit
before tax of US$2.1 million (£1.1 million). Gross assets as at 31 December
2005 were US$8.8 million (£4.6 million).
Summary terms of the Acquisition
Under the terms of the acquisition agreement, Vitec has acquired the shares of
Tomcat Global for an initial net cash consideration of US$14.5 million (£7.6
million) subject to any closing balance sheet adjustments.
Deferred cash consideration of up to a maximum of US$8.3 million (£4.4 million)
is also payable on the achievement of certain annual profitability targets for
2007-09. Additional consideration of up to $5.5 million (£2.9 million) will only
become payable if profit before interest and tax in the year ending 31 December
2008 for Tomcat (excluding Brilliant Stages) exceeds $2.2 million (£1.2
million). Additional consideration of up to £1.5 million will only become
payable if profit before interest and tax in the year ending 31 December 2009
for Brilliant Stages exceeds £0.75 million.
Analysts conference call
Vitec will be hosting a conference call for analysts at 10.00am today. For dial
in details please contact Elaine Ryman at Financial Dynamics on 020 7269 7121.
-Ends-
Contacts:
The Vitec Group plc Telephone: 020 8939 4650
Gareth Rhys Williams, Chief Executive
Alastair Hewgill, Finance Director
Financial Dynamics
Richard Mountain / Susanne Walker Telephone: 020 7269 7121
Notes to Editors
About The Vitec Group plc
The Vitec Group plc supplies a wide range of equipment and services to the
broadcasting, entertainment and photographic industries. Its products are
distributed in nearly 100 countries, either through dealerships or direct to the
end user or corporate customer. The Vitec Group is a major force in its chosen
specialised fields.
More information can be found at: http://www.vitecgroup.com.
Notes
1. This statement should not be taken to mean that earnings per share (pre
amortisation of intangibles) of The Vitec Group plc will necessarily exceed
historic earnings per share (pre amortisation of intangibles) of The Vitec Group
plc and no forecast is intended or implied.
2. Statements made in this announcement that look forward in time or that
express management's beliefs, expectations or estimates regarding future
occurrences are 'forward-looking statements' within the meaning of the United
States federal securities laws. These forward-looking statements reflect Vitec's
current expectations concerning future events and actual results may differ
materially from current expectations or historical results.
3. All values in pounds sterling have been calculated using the exchange rate:
£ 1: 1.90 US$
This information is provided by RNS
The company news service from the London Stock Exchange
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