(updates with detail on further payments)
LONDON (Thomson Financial) - Bateman Engineering N.V. said it is to acquire
Delkor Group of companies for a minimum of $11.45 million cash.
Bateman Engineering expects the deal to be earnings enhancing in the first
full year of ownership and said it sees the acquisition closing in all relevant
jurisdictions shortly except China, where completion is subject to regulatory
approval.
David Minson, currently a regional Managing Director of Delkor's largest
division -- Delkor Americas -- has been appointed chief executive of the Delkor
Group. Minson will report to Bateman Engineering head Arnold Matthee.
An initial payment of $5.3 million will be paid upon completion with further
payments due on 30 September 2008 and 30 September 2009
Deferred consideration payments will be subject to adjustment based on the
rate of growth of the Delkor Group's consolidated pretax profit for each of the
financial years June 30, 2008 and June 30, 2009.
The cash consideration is subject to a maximum cap of $47.5 million, which
would be payable if the average annual growth of profit before tax exceeds 150
percent between 30 June 2007 and 30 June 2009.
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