RNS Number:9531U
Metalrax Group PLC
01 December 2005


Issued on behalf of Metalrax Group PLC
Date: 1 December 2005

                 METALRAX GROUP PLC ("Metalrax" or "the Group")

                     Acquisition of complementary business

Metalrax today announces that it has acquired the entire issued share capital of
Sand Finance Limited ("Sand Finance"), a non-trading holding company, together
with its trading subsidiary, Stackright Building Systems Limited ("Stackright"
or "the Company") from a group of private individuals.

Stackright is a specialist manufacturer and supplier of storage and container
units principally to the construction industry and employs 130 people at its
operations in the Midlands and The North West. Following completion of the
acquisition, the Directors and employees of Stackright will remain with the
business.

The Company was originally founded in 1970 and subsequently purchased by the
current Management team in 1999. Stackright's product range includes;
anti-vandal stores, high security purpose built accommodation, offices, medical
rooms, drying rooms, secure toilets, complete multi storey site compounds and
custom containers for housing generators, pumps, compressors and
telecommunications and utilities housings.

The initial consideration payable is #4,000,000 (subject to adjustment if
consolidated net tangible assets at completion are greater or less than
#1,050,000). Further consideration will become payable, subject to a maximum of
#750,000, depending upon the pre-tax profits of Stackright for the financial
years ending on 31 December 2006, 31 December 2007 and 31 December 2008.
Metalrax intends to fund the consideration out of its existing cash resources
and debt facilities.

In the year ended 31 May 2005, Sand Finance and its subsidiaries made a pre-tax
profit before dividend of #691,000 on a turnover of #10,396,000 and as at that
date had net assets of #650,000, with gross assets of #4,331,000 as at the same
date.

Richard Arbuthnot, Chief Executive, Metalrax commented:
"We are very pleased to have been able to bring the Stackright business into the
Group as it strengthens our product and service offering within our engineering
support services activities. Through this investment in a new market sector we
expect to be able to further expand and diversify Group trading and synergies
with existing businesses will provide additional growth potential."


Enquiries:
Richard Arbuthnot, Chief Executive           Fiona Tooley
Metalrax Group PLC                           Citigate Dewe Rogerson Ltd
Tel:    0121 433 3444                        Tel: 0121 455 8370
E-mail: info@metalrax-group.co.uk            Mobile: 07785 703523
        www.metalrax-group.co.uk





                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
ACQDGBDBIBXGGUG
Metalrax Group (LSE:MRX)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Metalrax Group Charts.
Metalrax Group (LSE:MRX)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Metalrax Group Charts.