Acquisition

RNS Number:2305R
Brammer PLC
01 April 2008



                                  Brammer plc
                          ("Brammer" or "the Company")
                                CBS ACQUISITION
                  BRAMMER ACQUIRES LEADING UK REGIONAL PLAYER



Brammer, the European industrial services group, today announces the acquisition
of 100% of the business of CBS Rotary Power Motion ("CBS") in the UK. CBS is one
of the leading Midlands based specialist industrial services businesses
providing critical industrial components, bearings and related power
transmission products.

The acquisition of CBS is consistent with Brammer's stated strategy, giving the
company the leading market position in the Midlands in the provision of
bearings, power transmission, and fluid power. The acquisition reinforces
Brammer's leadership position in Europe, enhances its key account offering to
pan-European customers and strengthens the UK management team.



Highlights

The acquisition of CBS will enhance Brammer's position as a major pan-European
industrial services business in one of the key economies of the UK.

*    CBS had net sales of £7.2 million in the year to 31 October 2007.

*    The minimum consideration for the acquisition of 100% of CBS is £5.8
     million (£4.4 million net of £1.4 million of  cash at completion) payable 
     in installments over a three year period plus an agreed earnout. The  
     acquisition is  subject to a total maximum consideration of £9.5 million.

*    The first tranche payment is £3.5 million cash, and  is payable on 
     completion.  The second payment of £0.9 million  is payable on the first
     anniversary of completion with two further payments of £0.7 million payable 
     on the second  and third anniversaries.

*    The earnout is dependent on the financial performance of the business and 
     will result in a maximum payment of  £3.7 million payable from 2012.

*    The acquisition is expected to be earnings enhancing from completion.



David Dunn, chairman of Brammer, commented:

"We are delighted to announce the acquisition of CBS which further extends
Brammer's European market leadership. It strengthens our position in the UK and
gives us a base from which to grow earnings through greater market penetration
in the UK, building on the current momentum.  This transaction fits our stated
strategy of acquiring quality businesses which closely fit Brammer's established
product portfolio and business strategy in order to complement the organic
growth opportunities in our key account and pan-European businesses."



Enquiries:      Brammer plc                                       0161 902 5572
                David Dunn, Chairman
                Ian Fraser, Chief Executive
                Paul Thwaite, Finance Director

Issued:         Citigate Dewe Rogerson Ltd                        020 7638 9571
                Martin Jackson
                Nicola Smith




                                    Brammer plc
                       Background to the acquisition of CBS

Introduction

Brammer, the European industrial services group, today announces the acquisition
of 100% of the business of CBS.  CBS is engaged in the provision of critical
industrial components including bearings, power transmission and fluid power to
a wide variety of industrial and commercial customers.



Terms of the acquisition

Brammer will acquire a 100% interest in CBS payable in four tranches.  For the
first tranche Brammer will pay £3.5 million in cash. The second payment of £0.9
million is payable on the first anniversary of completion with two further
payments of £0.7 million payable on the second and third anniversaries. An
earnout payment of up to £3.7 million is payable from 2012 should certain agreed
profit targets be achieved.



Background on CBS

The CBS business has 6 branches across the Midlands and 52 employees.

The product range includes bearings, power transmission and fluid power and is a
good fit with Brammer's existing product portfolio.

The business generated sales of £7.2 million and EBIT of £0.7 million in the
year to 31 October 2007.  Net assets were £1.5 million at the year end and gross
assets were £3.4 million.


Reasons for the acquisition

The acquisition of the CBS business is in line with Brammer's strategy of
further developing its position as the leading pan-European industrial services
business through both organic growth and bolt-on acquisitions.



The acquisition of the CBS business:


*   Gives Brammer a leading position in the provision of bearings and mechanical 
    power transmission in  the strategically important Midlands industrials 
    market; and

*   Enhances Brammer's key account and pan-European capabilities.


In line with strategy, further 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.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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