Acquisition

    RNS Number : 4687U
  Brammer PLC
  15 May 2008
   


    Brammer plc
    ("Brammer" or "the Company")

    TECNOFORNITURE ACQUISITION 
    BRAMMER ACQUIRES LEADING ITALIAN REGIONAL PLAYER

    Brammer, the European industrial services group, today announces the acquisition of 100% of the business of Tecnoforniture Srl
("Tecnoforniture") in Italy for £8.6million. Tecnoforniture is one of the leading regional Italian specialist industrial services
businesses providing critical industrial components, bearings and related power transmission products. 

    The acquisition of Tecnoforniture is consistent with Brammer's stated strategy and reinforces Brammer's leadership position in Europe,
enhancing its key account offering to pan-European customers. This acquisition expands Brammer's presence in Italy, an important growth
market. 

    Highlights

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

    *     Tecnoforniture had net sales of £9.2 million in the year to 31 December 2007. 

    *     The total consideration for the acquisition of 100% of Tecnoforniture is £8.6 million (£6.5 million net of £2.1 million of cash
and cash equivalents) payable in instalments over a two year period.

    *     The first tranche payment is £4.3 million cash, and is payable on completion.  The second payment of £2.15 million is payable on
the first anniversary of completion with a further payment of £2.15 million payable on the second anniversary.

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

    David Dunn, chairman of Brammer, commented:

    "We are delighted to announce the acquisition of Tecnoforniture which extends Brammer's European footprint in Italy and provides a base
from which to grow earnings and further increase market penetration.   This transaction strengthens Brammer's European market leadership and
fits our stated strategy of acquiring quality businesses which closely fit our 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 Tecnoforniture

    Introduction

    Brammer, the European industrial services group, today announces the acquisition of 100% of the business of Tecnoforniture. 
Tecnoforniture 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 Tecnoforniture payable in three tranches.  For the first tranche Brammer will pay £4.3 million
in cash. The second payment of £2.15 million is payable on the first anniversary of completion with a further payment of £2.15 million
payable on the second anniversary. 

    Background on Tecnoforniture

    The Tecnoforniture business is based in Porto D'Ascoli, on the east coast, and has 32 employees. 

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

    The business generated sales of £9.2 million and EBIT of £1.05 million in the year to 31 December 2007.  Net assets were £4.2 million
at the year end and gross assets were £7.1 million. 

    Reasons for the acquisition

    The acquisition of the Tecnoforniture 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 Tecnoforniture business:

    *     Provides Brammer a platform from which it can strengthen its market position in the provision of bearings and mechanical power
transmission in the strategically important Italian 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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