Chloride Group PLC - Acquisition

RNS No 0121w
CHLORIDE GROUP PLC
24th November 1998

ACQUISITION OF ONEAC CORPORATION

Chloride, the UK based international electronics Group, has announced,
together with its interim results, that it has entered into an agreement to
acquire Oneac Corporation, a leading US uninterruptible power supplies ("UPS")
and power  conditioning company based in Chicago.

The consideration is US$30 million, payable in cash on completion plus an 
additional cash payment of up to US$5 million depending on Oneac's earnings
for the year to 30 November 1999.  The acquisition is expected to enhance
Chloride's earnings per share.  Completion of the transaction, which is
conditional on clearance under US competition legislation and on approval by
Oneac's  shareholders, is expected to be by the end of January 1999.

Oneac manufactures and supplies a range of UPS and power conditioning products
for critical applications primarily in the rapidly growing areas of 
telecommunications, retail, biomedical systems and industrial process
controls.
  
The business has approximately 200 employees in the US and a further 20 in a
UK subsidiary.  Oneac will be integrated into Chloride's Power Protection
Systems Division.

The acquisition will bring the following benefits to Chloride :-

-  A strong platform from which to access the important and high growth US 
   power protection market;
-  The establishment, through the combination of complementary product ranges,
   of one of the broadest UPS offerings in the industry, facilitating the 
   delivery of total power protection solutions to the end user;
-  The opportunity to sell Chloride's UPS products through Oneac;
-  Entry into the complementary market of power conditioning products;
-  The opportunity to market Oneac's product range internationally through 
   Chloride's established distribution network;
-  The opportunity to develop Oneac's service business through the marketing
   in the USA of Chloride's after sales service and remote monitoring system. 

It is expected that, for the twelve months to 30 November 1998, Oneac's
pre-tax profits will be approximately US$3 million before exceptional costs of
US$1.4  million on turnover of US$34 million (1997: break even at the profit
before tax  level after exceptional costs of US$0.9 million on sales of US$28.4
million).

The book value of the net assets being acquired stood at US$5.1 million as at
30 November 1997.  

Commenting on the acquisition of Oneac, Keith Hodgkinson, Chloride's Chief 
Executive, said: "Oneac provides an excellent platform from which to further 
exploit the opportunities in the US power protection market.  It has developed

its business into high-growth market segments by delivering high-quality, 
reliable solutions to its impressive blue chip customer base.  Moreover, the 
complementary nature of its operations to our existing UPS business provides 
good opportunities to accelerate the development of both businesses as they
are brought together."

Enquiries:                               Telephone:

Chloride Group PLC
Keith Hodgkinson (Chief Executive)       On 24 November:   0171 796 4133 
Neil Warner (Finance Director)           Thereafter:       0171 834 5500

Hudson Sandler Limited                   0171 796 4133
Andrew Hayes/James Cracknell



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