RNS Number:0080P
Haynes Publishing Group PLC
29 February 2008
Haynes Publishing Group P.L.C. Acquisition
The Board of Haynes Publishing P.L.C. (Haynes) is pleased to announce the
acquisition of Vivid Holdings BV (Vivid), the Dutch based provider of technical
information to the professional automotive market. The Vivid Group of companies
has its headquarters in Soest, Holland and operates throughout Europe.
The Group publishes technical information for use by professional mechanics
engaged in servicing, maintaining and repairing both automobiles and heavy
trucks. The Vivid products are offered in multiple languages and are available
in both an on-line web-delivered version or in an offline DVD format. The Vivid
database contains technical information on maintenance, repair and diagnosis for
over 6,500 European and Asian vehicle models, including heavy trucks and Vivid
products are used by over 25,000 independent car workshops throughout Europe.
The Haynes Board is also pleased to confirm that the services of the key
founders have been retained in the business and they will be an important part
of the future growth and development of the Vivid Group.
The consideration for the acquisition was Euro8.0 million (£6.0 million), payable
in cash on completion. For the financial year ended 31 December 2007 the Vivid
Group reported a consolidated pre-tax profit of Euro0.9 million (£0.7 million) on
revenue of Euro4.3 million (£3.2 million). The Vivid Group had gross assets as at
31 December 2007 of Euro2.9 million (£2.2 million).
The Vivid database, which is compiled using market leading digital technology
and is available in 19 languages, will allow Haynes to leapfrog the development
of its own professional product and immediately become the market leader in the
supply of digital technical information to the professional automotive market in
continental Europe. The acquisition will also provide Haynes with in-house
skills covering language translation, web development, DVD production and copy
protection security which are all complimentary to the way in which Haynes is
planning to develop its own product offerings going forward. This opens up the
possibility of an internet based multi-language consumer product for markets
that could not support the cost base of a print based product.
Geographically, the acquisition of Vivid presents an opportunity for Haynes to
incorporate the Australian technical database, gained through the acquisition of
Bookworks in 2007, into the Vivid product offering, thereby enhancing the value
of both the Bookworks and Vivid acquisitions. In the medium term, the
acquisition provides Haynes with the ability to take the Vivid product offering
to new geographical markets where Haynes has a strong presence but Vivid
currently do not and this will be a key focus for management of both businesses
in the short to medium term.
Haynes is market leader throughout the English speaking world in the supply of
repair and maintenance information to Do it Yourselfers in the automotive and
motorcycle markets. As a result, Haynes is well placed to extend its franchise
to become a major world wide supplier for all automotive and motorcycle
technical and repair information. This acquisition represents a significant
strategic step in that repositioning process.
Additionally, in a changing global market place that is increasingly demanding
content through multi-media channels, the Board of Haynes believes the
acquisition of Vivid can be of great assistance in expanding its current core
product range into new products and new markets.
With the majority of the funding for the acquisition coming from internal cash,
the Group remains financially well placed to continue its pursuit of other new
opportunities as they arise.
Contacts :
Haynes Publishing Group P.L.C.
Eric Oakley, Group Chief Executive 01963 442 009
Rebecca Nicholls (PR Agency) 01452 886 380
Chris Wall (PR Agency) 01452 886 382
Blue Oar Securities Plc
Jerry Keen 0207 448 4492
Mike Coe 0117 933 0020
This information is provided by RNS
The company news service from the London Stock Exchange
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