Haynes Publishing Group PLC Acquisition (8909R)
December 15 2016 - 2:00AM
UK Regulatory
TIDMHYNS
RNS Number : 8909R
Haynes Publishing Group PLC
15 December 2016
15 December 2016
Haynes Publishing Group P.L.C.
("Haynes")
Acquisition of OATS Limited
Haynes (LON:HYNS) is pleased to announce the acquisition of OATS
Limited ("OATS") for a total consideration of GBP2.4 million. OATS
is a niche technology business that provides information and
productivity solutions for the lubricants sector of the oil
industry.
Haynes has acquired 100% of the issued share capital of OATS,
with GBP1.85 million payable in cash on completion and additional
liabilities of GBP0.55 million assumed as part of the transaction,
which are all payable within 18 months of completion. The
consideration has been financed through a combination of cash and
borrowing, funded through an increase in the Haynes UK bank
overdraft facility. For its financial year ended 30 June 2016, the
reportable pre-tax loss of the OATS Group was GBP0.1 million on
revenue of GBP2.2 million. As at 30 June 2016, the OATS Group had
gross assets of GBP3.3 million.
Formed in 1983, OATS is a Swindon based company with 35
employees that has been servicing the world's major lubricants
businesses under the ownership of Sebastian Crawshaw for the past
20 years.
OATS has developed a world leading comprehensive equipment and
lubricants database that supports customers from across the
lubricants marketing and supply chain, ranging from original
equipment manufacturers, oil companies and lubricant distributors
to end-users such as workshops, motor parts resellers and garages.
OATS' customers have access to an unrivalled source of information
about lubricants that enables them to recommend the most
appropriate oil to their end users.
The acquisition of OATS complements Haynes' professional
offering by providing HaynesPro customers with comprehensive
information on lubricants as part of its technical database. It
will further strengthen the relationship between Haynes, parts
distributors and oil companies.
Commenting on the acquisition, J Haynes, CEO of Haynes said: "We
look forward to welcoming the OATS team to the Haynes Group. I am
delighted that Sebastian will remain involved in a consultancy
capacity to facilitate a smooth transition. The OATS global
lubricants database will enhance HaynesPro's digital data solutions
to the professional market. At the same time, we will leverage our
European commercial network to drive new business for OATS. The
acquisition will accelerate management's drive to grow the
HaynesPro business, increasing Group revenue and profit."
Sebastian Crawshaw, Chairman of OATS, commented: "I am very
proud of what OATS has been able to achieve as a team over the last
20 years. From a personal perspective, it is very satisfying to
pass on the baton to an iconic British brand such as Haynes. Under
the direction of HaynesPro, I firmly believe OATS is well placed to
accelerate the global development of new innovative solutions and
delivery platforms for the lubricants industry which will help the
combined businesses grow over the next 20 years."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
-Ends-
Enquiries :
Haynes Publishing Group P.L.C. +44 1963 442009
Eddie Bell, Chairman
J Haynes, Chief Executive Officer
Investor Contact: Panmure Gordon (UK) Limited +44 20 7886 2500
Karri Vuori
Media Contact: New Century Media +44 20 7930 8033
Richard Hill
This information is provided by RNS
The company news service from the London Stock Exchange
END
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