BRAM Brammer

RNS Number:9076Q
Brammer PLC
08 February 2007

                                  Brammer plc

                                FIN ACQUISITION
              BRAMMER ACHIEVES A MARKET LEADING POSITION IN POLAND


Brammer, the European industrial services group, today announces the acquisition
of 51% of the business of the Fin S.A group and a commitment to acquire the
remaining 49% between 2010 and 2012. Fin is one of the leading Polish specialist
industrial services businesses providing critical industrial components,
bearings and related power transmission products. The acquisition is conditional
on clearance being received from the Polish competition authorities which is
expected within the next 3 months.


The acquisition of Fin is consistent with Brammer's stated strategy, giving the
company a leading market position in Poland in the provision of bearings, power
transmission, and fluid power products. The acquisition further reinforces
Brammer's leadership position in Europe and enhances its key account offering to
pan-European customers.


Highlights


The acquisition of Fin will enhance Brammer's position as a major pan-European
industrial services business in one of the key growing industrial economies of
Eastern Europe. Poland is currently enjoying GDP growth of approximately 5%.


*  Fin had net sales of #17.5 million in the year to 31 December 2006.


*  The agreement is for the acquisition of Fin in two tranches for a
   minimum consideration of #9.6million.


*  The consideration in respect of the first tranche is #4.9 million cash,
   and is payable on completion.  Consideration in respect of the second tranche 
   of between #4.7 million and #14.1 million is to be paid between 2010 and 
   2012.


*  The acquisition is expected to be earnings enhancing from completion.


Brammer will announce its results for the year to 31 December 2006 on Tuesday 27
February 2007.  Profit before tax under IFRS for the year ended 31 December 2006
is anticipated to be in line with management's expectations and slightly ahead
of market consensus, at not less than #11.7m after a #0.2 million charge for the
amortisation of acquired intangible assets.


David Dunn, chairman of Brammer, commented:


"We are delighted to announce the acquisition of Fin which further extends
Brammer's European market leadership. It strengthens our position in Eastern
Europe and gives us a base from which to grow earnings through greater market
penetration in Poland, a key industrial economy.  The acquisition fits our
stated strategy of acquiring quality businesses which closely fit Brammer's
established product portfolio and business strategy in order to complement the
organic growth opportunities in our key account and pan-European businesses."


Enquiries:      Brammer plc                             0161 902 5572
                David Dunn, Chairman
                Ian Fraser, Chief Executive
                Paul Thwaite, Finance Director


Issued:         Citigate Dewe Rogerson Ltd              020 7638 9571
                Martin Jackson
                Nicola Smith




                                  Brammer plc
                   Background to the acquisition of Fin S.A.


Introduction


Brammer, the European industrial services group, today announces the acquisition
of 51% of the business of Fin S.A. with a further commitment to acquire the
remaining 49% subject to an earn-out by 2012.  Fin is engaged in the provision
of critical industrial components including bearings, seals, power transmission
and fluid power products to a wide variety of industrial and commercial
customers.


Terms of the acquisition


Brammer will acquire a 100% interest in Fin in two tranches.  The first tranche
will be the purchase of 51% for which Brammer will pay #4.9 million in cash. The
acquisition remains conditional on gaining antimonopoly clearance from the
Polish authorities which is expected by early May 2007. The second tranche will
be the purchase, between 2010 and 2012, of the remaining 49% for a minimum
consideration of #4.7 million. The consideration for the second tranche could be
increased up to a maximum of #14.1 million should certain agreed profit targets
be achieved. For illustration, under the terms of the agreement, if profit
growth were 10% per annum then the second tranche payment would be #7.8 million.


Background on Fin


The Fin business has 11 branches across Poland and 165 employees.


The product range includes bearings, belts, couplings, motors and chains and is
a good fit with Brammer's existing product portfolio.


The Fin business generated unaudited sales and EBITDA of #17.5 million and #1.6
million respectively in the year to 31 December 2006.  Unaudited net assets were
#3.7 million at the year end.


Reasons for the acquisition


The acquisition of the Fin business is in line with Brammer's strategy of
further developing its position as the leading pan-European industrial services
business through both organic growth and bolt-on acquisitions.


The acquisition of the Fin business:


*  gives Brammer a leading position in the provision of bearings and mechanical 
   power transmission in  the strategically important and growing Polish
   industrials market; and

*  further enhances Brammer's key account and pan-European capabilities.


In line with strategy, further acquisitions are being sought to consolidate
Brammer's position as the only supplier capable of servicing the needs of major
pan-European customers for critical industrial components, bearings and related
products.


The Company intends to announce its results for the year end 31 December 2006 on
27 February 2007.

                                      ENDS






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