Mincon Group Plc Acquisition of Lehti Group (2238A)

TIDMMCON

RNS Number : 2238A

Mincon Group Plc

20 January 2020

MINCON GROUP PLC

("Mincon" or the "Company")

Acquisition of Lehti Group Oy

Mincon (Euronext: MIO AIM: MCON) the Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products is pleased to announce the acquisition of Finnish company, Lehti Group Oy ("Lehti") to further enhance Mincon's manufacturing capability in the geotechnical / construction market. The acquisition of Lehti follows on from the acquisition of PPV Oy in 2017, which became a key part of our engineering hub in Mincon Nordic, focusing on accessing the geotechnical / construction markets. Following the acquisition, the Lehti business will be fully combined into Mincon Nordic operations.

The significant growth Mincon Nordic has experienced in the geotechnical market has resulted in Lehti becoming a key manufacturing partner to Mincon, with Mincon accounting for approximately EUR9 million of the projected EUR13 million turnover achieved by Lehti during 2019. The projected EBITDA of Lehti for the calendar year 2019 is approximately EUR2.2 million. The partnership with Lehti has enabled Mincon to win and supply significant infrastructure projects in North America, Scandinavia, Asia and Russia. The cash consideration for the acquisition is EUR8 million, with EUR7 million to be paid on completion and a further EUR0.5 million payable in April 2020 and the final payment of EUR0.5 million in April 2021.

Joe Purcell, Chief Executive of Mincon, commented: "This acquisition means that Mincon Nordic enters 2020 with the momentum provided by the contracts which we successfully won in 2019 and with superb reference sites for Mincon geotechnical products manufactured by Lehti. We believe this acquisition will leave Mincon well placed to further expand in the attractive geotechnical market worldwide."

Ends

 
 For further information, 
  please contact: 
 Mincon Group plc 
 Joe Purcell, Chief Executive            Tel: + 353 (61) 361 099 
  Officer 
  Mark McNamara, Chief Financial 
  Officer 
 
 Davy Corporate Finance (Nominated Adviser and Euronext Growth 
  Advisor) 
 Anthony Farrell                          Tel: +353 (1) 679 6363 
 Daragh O'Reilly

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