Spectris PLC Acquisition of Millbrook Group (7717I)
September 02 2016 - 2:00AM
UK Regulatory
TIDMSXS
RNS Number : 7717I
Spectris PLC
02 September 2016
RIS announcement by Spectris
Acquisition of Millbrook Group
2 September 2016 - Spectris plc ("Spectris") (LSE: SXS), the
productivity-enhancing instrumentation and controls company, today
announces that it has completed the acquisition of the entire share
capital of Millbrook Group Limited ("Millbrook") from Rutland
Partners and Millbrook's management shareholders. The purchase
consideration of GBP122 million, on a debt and cash-free basis, (of
which GBP3.4 million is deferred for 24 months) will be met from
existing cash and bank facilities.
Millbrook is one of Europe's leading test, validation and
engineering service providers primarily for the automotive and
related markets such as tyres, petrochemical, defence and security.
Established in 1968, Millbrook was sold by General Motors ("GM") to
Rutland Partners and Management in 2013 and from that point it has
been transformed from a GM dependent business to one with a broad
base of UK and international clients and test and validation
services. Furthermore, in September 2015, Millbrook acquired Test
World, a leading winter vehicle and tyre testing business within
the Arctic Circle, based in Finland. Millbrook's services and
capabilities allow customers to speed up their product design and
launch processes and, in turn, improve their return on development
investment. The business' UK test tracks and facilities are located
on a wholly-owned 665 acre site in Millbrook, Bedfordshire that has
scope for further related commercial development.
Millbrook has undertaken significant growth capital expenditure
programmes in 2015 and in 2016, from which trading in 2016 is
expected to benefit considerably. Trading in 2016 will also be
enhanced by the full year impact of the Test World acquisition and
continued high levels of organic growth from non-GM customers.
Revenue in the year to December 2015 was GBP48 million and earnings
before interest, tax, depreciation and amortisation ("EBITDA") was
GBP5.4 million. On a proforma basis, using the expected 2016 exit
run-rate EBITDA (adjusted for the full year impact of Test World
and the capital expenditure projects), the consideration represents
a 12-13x EBITDA multiple. Beyond 2016, the business has significant
opportunities to accelerate its growth with a range of customers,
and in key areas of testing, through further customer-supported
investment in capabilities and facilities. Millbrook will become a
separate operating company within Spectris' Test and Measurement
segment. More information on Millbrook can be found at
www.millbrook.co.uk. The gross assets of Millbrook at December 2015
were GBP44.8 million.
John O'Higgins, Chief Executive, said: "Millbrook represents our
largest purchase to date of a pure testing services business. It is
closely related to our existing instrumentation businesses and, as
such, the acquisition is an important step forward in the
realisation of the Group's strategy to provide our customers with
differentiated solutions that incorporate a combination of
hardware, software and services. Supported by Spectris' global
reach and expertise, the combination of Millbrook's service
excellence and the testing equipment and software in other Spectris
operating companies will help customers address the increasing
complexities involved in product testing whilst reducing the time
to market for new products. We believe that there is a significant
opportunity for Millbrook to strengthen its market position and
accelerate its growth through continuing its recent capital
investments and making bolt-on acquisitions to expand
internationally and broaden its service portfolio."
A conference call for analysts and investors will be held at
08:00 (UK time) today to discuss this statement. To access the call
please use the following numbers:
+44 20 3139
Toll number 4830
0808 237
Toll-free number 0030
Participant
PIN 69490022#
+44 20 3426
Replay number 2807
Replay toll-free 0808 237
number 0026
Replay PIN 676292#
Spectris will publish a trading update for the period 1 July
2016 to 31 October 2016 on 22 November 2016. This announcement
contains inside information.
- ENDS -
Contacts:
Spectris plc
Clive Watson, Group Finance
Director +44 1784 470470
FTI Consulting
Richard Mountain / Susanne
Yule +44 20 3727 1340
ABOUT SPECTRIS
Spectris plc is a leading supplier of productivity-enhancing
instrumentation and controls. The Company's products and
technologies help customers to improve product quality and
performance, improve core manufacturing processes, reduce downtime
and wastage and reduce time to market. Its global customer base
spans a diverse range of end user markets. Spectris operates across
four business segments which reflect the applications and
industries it serves: Materials Analysis, Test and Measurement,
In-line Instrumentation and Industrial Controls. Headquartered in
Egham, Surrey, United Kingdom, the Company employs around 8,700
people with offices in more than 30 countries. For more
information, visit www.spectris.com (http://www.spectris.com).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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