Acquisition

RNS Number:8485Q
Brammer PLC
06 September 2005


FOR IMMEDIATE RELEASE                                           6 September 2005

                                  Brammer plc
                                MHBH ACQUISITON
            BRAMMER ACHIEVES MARKET LEADERSHIP IN THE CZECH REPUBLIC

Brammer, the European industrial services group, today announces the acquisition
of 51% of the business of MHBH a.s., with a commitment to acquire the remaining
49% between 2008 and 2009. MHBH is a privately owned Czech specialist industrial
services business engaged in the provision of critical industrial components,
bearings and related products.

The acquisition of MHBH is a strategic advance for Brammer, further
consolidating its position as  Europe's leading provider of bearings, power
transmission and fluid power components and expanding its presence in the
growing industrial markets of Eastern Europe.

Highlights
     
*    The acquisition is expected to be earnings enhancing in the first full year 
     of ownership.

*    The acquisition of MHBH's business will enhance Brammer's position as a
     major pan-European industrial services business in the key industrial 
     economies of Germany, the UK, France, Spain, Benelux and now the Czech 
     Republic.

*    Consolidation of MHBH with Brammer's existing businesses will bring
     significant commercial and synergistic and working capital benefits to MHBH 
     and to the group.

*    MHBH improves Brammer's base for growth in Eastern Europe which is
     benefiting from the re-location of manufacturing to lower cost economies.

*    The contract allows for the acquisition of the business of MHBH in two
     stages, for a total consideration estimated to be in the range of #3.2 
     million to #3.8 million with an initial cash payment of #1.5 million.  
     MHBH generated sales of #6.7 million in the year to December 2004.

David Dunn, chairman of Brammer, commented:

"The acquisition of MHBH extends further Brammer's European market leadership.
It consolidates our position in Eastern Europe and gives us a base from which to
generate earnings growth through further market penetration."


Enquiries:         Brammer plc                                     0161 902 5599
                   David Dunn, Chairman
                   Ian Fraser, Chief Executive
                   Paul Thwaite, Finance Director

Issued:            Citigate Dewe Rogerson Ltd                      020 7638 9571
                   Martin Jackson
                   Anthony Kennaway


                                  Brammer plc

                     Background to the acquisition of MHBH

Introduction

Brammer, the European industrial services group, today announces the acquisition
of 51% of the business of MHBH a.s., with an commitment to acquire the remaining
49% on an earn-out basis by 2009.  MHBH is engaged in the provision of critical
industrial components including bearings, seals and power transmission products.

Terms of the acquisition

Brammer will acquire, a 100% interest in MHBH in two stages.  The first stage
will be the purchase of 51% effective from 6 September 2005 for which Brammer
will pay #1.5 million in cash.

The second stage will be the purchase, by 2009 of the remaining 49% for a
consideration in the range #1.7 million to #2.3 million.

Background on MHBH

The MHBH business has 11 branches and 61 employees.

The product range includes bearings, quick-couplers, belts, tools and pumps. The
MHBH business generated sales and pre-interest profits of CzK 290.3million (#6.7
million) and CzK 23.9 million (#0.6 million) respectively in the year to 31
December 2004.  Net assets were CzK 85.0 million (#2.0 million) at the year end.

Background to and reasons for the acquisition

The acquisition of the MHBH business is a further step in Brammer's strategy of
being the leading pan-European industrial services business.

The acquisition of the MHBH business:
     
*    improves Brammer's position as one of the leading pan-European industrial
     services businesses with access to the economic and commercial advantages 
     that this will bring.  It complements Brammer's existing European 
     businesses and can be absorbed seamlessly into that network whilst 
     enhancing Brammer's position in the Czech market;

*    gives Brammer a significant and unique ability to serve the growing
     number of international customers who wish to source industrial components 
     on a pan-European basis, including the lower cost economies of Eastern 
     Europe.  The acquisition therefore provides an enhanced platform for 
     further growth of Brammer's corporate account business.

Further bolt-on acquisitions are being sought to consolidate Brammer's position
as the only supplier capable of servicing the needs of major pan-European
customers for critical industrial components, bearings and related products.
                                    

                                      ENDS

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