Armour Trust PLC - Acquisition

RNS No 2967q
ARMOUR TRUST PLC
30th March 1998


Armour Trust PLC Acquisition

Armour Trust plc ("Armour") announces that it has acquired the automotive
accessories business owned by a subsidiary of Alexander Engineering Company
Limited ("Alexander").  

The business comprises the "Oddpak" range of accessories for the automotive,
marine and caravan markets, together with a range of character air-fresheners. 
The products will complement those already offered by companies within the
Armour group and their production will be incorporated in Armour's existing
manufacturing and distribution facilities.  Mr C. White, Alexander's production
and sales manager, will join Armour's automotive division.  In addition, Mr
T.J.A. Christie, managing director of Alexander, will be engaged by Armour as a
consultant to promote sales of the products to existing customers and the
development of new lines.

The consideration for the acquisition is a maximum of #750,000 comprising:

*         #650,000 to be satisfied as to #286,094 in cash on completion and as
to #363,906 by the allotment to Alexander of 2,785,885 ordinary shares of 10p
each in Armour ranking pari passu with the existing ordinary share capital.
Following the sale 2,535,885 of the shares allotted to Alexander were sold on,
for the same price at which they were allotted, to investment funds managed by
Armour's principal shareholder, Montanaro & Company Limited, and to an
investment company controlled by Armour's chief executive, Mr A.D. Balcombe.  

*         Up to #100,000 in cash or, at Armour's option, wholly or partly in
ordinary shares in Armour, to be satisfied approximately 15 months from
completion, provided that defined customer sales targets have been achieved.  

The turnover of the acquired business for the year ended 30 April 1997 amounted
to approximately #1.4 million.  It is not possible to quantify the profits
earned by the acquired business for this period as Alexander does not account
separately for its various trading divisions.  The book value of the net assets
acquired are valued at approximately #250,000.  

Enquiries:

Armour Trust plc
Andrew Balcombe     0171 497 0000


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