Cape plc Acquisition of leading tank storage specialist (9519B)
March 11 2014 - 03:00AM
UK Regulatory
TIDMCIU
RNS Number : 9519B
Cape plc
11 March 2014
Press Release
11 March 2014
Acquisition of leading tank storage specialist
Cape plc, the international provider of critical support
services to the energy and mineral resources sectors, announces
today that it has acquired UK-based Motherwell Bridge, a leading
provider of storage tanks, gasholders and heat exchangers to the
energy and steel markets.
The total consideration for the acquisition amounts to GBP37.65
million on a cash free, debt free basis, comprising of an initial
cash consideration of GBP34.0 million, debt of GBP0.9 million,
deferred consideration of GBP1.25 million contingent on a key
contract win and up to GBP1.5 million related to future
performance. The acquisition will be funded from the Group's
existing debt facilities and is expected to be earnings enhancing
in the current financial year ending 31 December 2014.
Motherwell Bridge, headquartered in Lanarkshire, Scotland, is
recognised internationally as a leader in the specialist storage
tank market. The business has an excellent global brand reputation
and has historically delivered a significant number of storage
tanks around the world. In addition, Motherwell Bridge also
provides and maintains gasholders for the global steel industry,
and maintains and refurbishes heat exchangers primarily in the UK
continental shelf. Motherwell Bridge has a strong management team,
all of whom will remain with the business post acquisition.
Motherwell Bridge employs approximately 300 people, primarily
located in the UK. For the year ending 31 December 2012, Motherwell
Bridge generated EBITA of GBP4.8 million on a revenue of GBP34.6
million. Its gross assets as at 31 December 2012 were GBP42.4
million.
Commenting on the acquisition, Joe Oatley CEO of Cape said:
"The acquisition of Motherwell Bridge is in line with Cape's
strategy to broaden our portfolio of critical industrial services.
Motherwell Bridge has tremendous expertise, reputation and brand
recognition in the oil and gas storage tank market, including a
market leading position in the UK and we expect to accelerate
Motherwell Bridge overseas growth through Cape's international
footprint. By combining the strengths of Cape and Motherwell Bridge
we are uniquely able to provide a complete tank maintenance
solution to clients in the oil and gas market."
Conference Call
The management of Cape will be hosting a conference call for
analysts and investors this morning at 9:30am and the call can be
accessed using the below dial in details:
Telephone: +44 (0)20 3139 4830
Pin code: 39884963#
About Cape
Cape plc (www.capeplc.com), which is listed on the main market
of the London Stock Exchange, provides a range of essential
industrial services including access systems, insulation,
refractory linings, painting, coating, blasting, industrial
cleaning, training and assessment to industrial plant operators and
major international engineering and construction companies.
As a single source provider, Cape is able to provide a range of
specialist multi-disciplinary services specifically tailored to
meet the needs of the client providing the most intelligent and
cost efficient solutions for clients' in-plant maintenance and
capital needs.
In the year ended 31 December 2012, Cape reported adjusted
revenues of GBP749 million. With scale and leading market positions
across its international footprint, Cape employs over 21,000 people
around the world.
For further information about Cape, please visit our website
www.capeplc.com
About Motherwell Bridge
Motherwell Bridge is a market leading specialist in the design,
build and maintenance of storage tanks, gasholders and heat
exchangers for the oil & gas, power generation and steel
manufacturing sectors.
Motherwell Bridge is recognised globally and serves many blue
chip clients including many national and international oil
companies.
Motherwell Bridge is a 'whole of life' supplier and offers a
complete range of services across all markets including design,
engineering, maintenance, construction and full project management.
With more than 100 years experience both internationally and in the
UK, offshore and onshore, the company's project portfolio includes
some of the most prestigious and innovative projects in the world,
including some of the world's largest built storage tanks.
- End -
For more information contact:
Joe Oatley, Chief Executive, Cape plc
joe.oatley@capeplc.com
+44 (0)1895 459979
Michael Speakman, Chief Financial Officer, Cape plc
michael.speakman@capeplc.com
+44 (0)1895 459979
Bobby Morse, Ben Romney & Louise Mason, Buchanan
+44 (0)20 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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