Senior Engng Group - Acquisition
May 11 1998 - 3:40AM
UK Regulatory
RNS No 2126j
SENIOR ENGINEERING GROUP PLC
11th May 1998
Senior Expands into Brazil
Senior Engineering Group plc is pleased to announce that it
has conditionally agreed to acquire through a newly formed
Brazilian holding company the business, trade and assets of
Deltaterm Industria e Comercio Ltda. ("Deltaterm"), Tecne S.A.
Industria e Comercio ("Tecne") and Teflex Industria e Comercio
S.A. ("Teflex"), for a total cash consideration of
approximately #12 million (c.US$20 million). The proforma
unaudited consolidated sales of Tecne, Deltaterm and Teflex
are #11.8 million (c.US$19.4million) with proforma
consolidated unaudited profit before tax of #2.3 million
(c.US$3.8 million).
The final consideration is dependent upon the net asset value
at closing which it is anticipated will be approximately
#3.0 million (c.US$5.0 million). The acquisition will be
financed from the Group's existing borrowing facilities and is
conditional on the completion of certain due diligence and
administrative matters. Completion is expected to take place
during the next two months.
In conjunction with this conditional agreement, Senior has
acquired a related Brazilian investment from Flexider S.p.A.
("Flexider"), an Italian company and subsidiary of Anamet
Inc. of the USA, for an additional cash consideration of #1.5
million (c.US$2.5 million), together with a license agreement
for Senior Flexonics' exclusive use of Flexider technology
in the Mercosur, the South American Common Market, for the
next five years.
Deltaterm and Teflex, founded in 1995 and 1994 respectively,
are located in Sao Paulo, Brazil and together have
approximately 150 employees. The companies design,
manufacture and sell flexible automotive exhaust decouplers to
a number of the major automotive OEM's in Brazil, notably Fiat
and Volkswagen, and are the leading such suppliers in South
America.
Tecne, founded in 1985 is also located in Sao Paulo, Brazil
and has approximately 110 employees. The company designs,
manufactures and sells expansion joints and flexible metallic
hoses to the petrochemical, mining and general industrial
markets and has established an excellent reputation for
quality and service.
Commenting on the acquisition of Deltaterm, Tecne and Teflex,
Andrew Parrish, Senior's Group Chief Executive said: "These
latest acquisitions are a significant strategic step towards
Flexonics' previously stated objectives. These newly acquired
businesses are a key step in the Group's development, as both
a global supplier to the automotive industry and as a leading
worldwide player in the industrial metallic hose and expansion
joint businesses. They will substantially enhance our
Flexonics Division and, as platform investments, provide the
clear potential to open attractive new markets for Senior
throughout South America."
For further information, please contact:
Senior Engineering Group Plc 01923 775547
Andrew Parrish, Group Chief Executive
Glenn Timms, Director - Corporate Development
Senior Flexonics Inc. 00 1 630372 3000
William L Kowal
Ludgate Communications 0171 253 2252
Tim Davis
Notes to Editors
Senior Engineering Group plc ("Senior") is a specialist
international engineering group with a market capitalisation
of approximately #680 million. It is organised into two
principal divisions - Flexonics and Engineered Products &
Services. The Flexonics Division, which provides more than 90
percent of the Group's operating profits, is a world leading
design and manufacturing business specialising in thin-walled
metallic flexible tubing and bellows, servicing the
Automotive, Aerospace (including Space) and Industrial
Markets.
END
ACQNFXSFFAXPEEN
Senior (LSE:SNR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Senior (LSE:SNR)
Historical Stock Chart
From Jul 2023 to Jul 2024