Croma Security Solutions Group PLC Acquisition (4363I)
December 09 2015 - 2:00AM
UK Regulatory
TIDMCSSG
RNS Number : 4363I
Croma Security Solutions Group PLC
09 December 2015
Croma Security Solutions Group Plc
(the "Company" or the "Group")
Acquisition
CSSG has acquired Access Locksmiths Limited, ("Access"), trading
as Access Key and Lock, a locksmithing business based in Fareham
and trading from five outlets along the south coast.
The maximum consideration for the entire issued share capital of
Access is GBP2 million, comprising 2,027,027 new ordinary shares in
CSSG ("Consideration Shares"), GBP0.6 million in cash on
completion, deferred consideration of GBP0.2 million in cash after
6 months, and up to GBP0.2 million will be payable in cash after 12
months subject to meeting earn out targets.
The Managing Director and owner of Access Locksmiths Limited, Mr
Mark Whettingsteel, has joined the board of CSSG plc and will run
all locksmith operations for the Group.
In the year to 28 February 2015, Access had sales of GBP2.44
million, profit before tax of GBP0.3 million and reported net
assets of GBP0.74 million at that date.
Application has been made for the admission of the Consideration
Shares to trading on AIM which is expected to occur on 14 December
2015.
Mr Whettingsteel receives a salary commensurate with the median
of the other executive directors' salaries and has agreed not to
sell the Consideration Shares for a period of 18 months commencing
on admission, except in certain restricted circumstances, and for a
further 2 years only to the extent that an orderly market is
maintained in the Company's shares.
Commenting on the transaction, Chairman Sebastian Morley said
"Access Key and Lock is a fantastic business with a great footprint
along the south coast. We are delighted to complete this
acquisition. which will significantly strengthen our locksmith
offering. It will help us secure and service large corporate
clients in the south and, in due course, further afield. We see the
locksmith market as one which is ripe for consolidation by a
quality focussed service provider.
The aim of this transaction is twofold: To add an excellent
business to the Group and to add expertise and focused leadership
to the Locksmith division of the Group. Where we can make strategic
acquisitions that add immediate value to shareholders, we shall do
so. Our aim is to create a total security solutions group that
delivers excellence and this this is a further step in that
project.
I am particularly pleased to welcome Mark Whettingsteel to the
Board. His achievements in growing his business over the last few
years speak for themselves and I look forward to bringing his
energy and enthusiasm to bear on our broader security
offering."
The following information is provided in accordance with
paragraph (g) of Schedule 2 and Schedule 4 of the AIM Rules for
Companies.
Mark Whettingsteel, aged 46, has a service contract as Director
of the Company dated 8 December 2015. The appointment is terminable
on 12 months' notice by either party.
Mr Whettingsteel holds, and has held within the five preceding
years, the following directorships and partnerships:
Centre Security Limited (Current)
Access Locksmiths Limited (Current)
Access Key and Lock Limited (Current)
Access Intruder Systems Limited (Resigned 20.5.13)
Enquiries:
Croma Security Solutions Group Plc 07768 006 909
Sebastian Morley (Chairman)
WH Ireland 0207 220 1666
(Nominated Adviser and broker)
Paul Shackleton
Nick Prowting
This information is provided by RNS
The company news service from the London Stock Exchange
END
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