Scapa Group PLC Acquisition (4471N)

TIDMSCPA

RNS Number : 4471N

Scapa Group PLC

09 August 2017

9 August 2017

Scapa Group plc

Acquisition of Markel Industries

Scapa Group plc ("Scapa") (AIM: SCPA), a global supplier of bonding solutions and manufacturer of adhesive-based products for the healthcare and industrial markets, is pleased to announce that it has acquired the entire share capital of Markel Industries, Controlled Environment Equipment Corp and CMark Films, LLC (together the "Company" or "Markel") for a total purchase price of USD$10 million.

Markel is a leading North American manufacturer of adhesive floor mats and tacky rollers for use in medical clean rooms, electronic and industrial assembly areas, construction site and sports venues.

As at 31 December 2016, the unaudited gross assets acquired were USD$1.2 million. Underlying adjusted EBITDA for the year ended 31 December 2016 was USD$1.7 million. The acquisition is expected to be earnings enhancing in the first full year and will be funded from existing cash reserves and bank facilities.

The Board believes the acquisition of Markel will give the following benefits:

-- Markel's largely North American customer base has a similar profile to Scapa's, offering cross-selling opportunities

-- Markel's high quality core clean room contamination prevention products will enhance Scapa's current products offerings in Europe

-- Meaningful overlap in supply chain and manufacturing technology as well as proximity of Markel's manufacturing sites to Scapa offer an opportunity for efficiencies

Commenting on the acquisition, Heejae Chae, the Group Chief Executive Officer of Scapa, said:

"The acquisition of Markel is a part of our Industrial strategy to further drive the Return on Capital Employed through concentration on our core customers and markets as well as optimisation of our manufacturing assets."

For further information:

 
 
   Scapa Group plc 
   Heejae Chae - Chief Executive 
   Graham Hardcastle - Finance 
   Director                           0161 301 7430 
 Numis Securities Limited 
  (Nominated Adviser and Joint 
  Broker) 
  Richard Thomas/Mark Lander          020 7260 1000 
 
 
   Berenberg 
   (Joint Broker) 
   Chris Bowman                       020 3207 7800 
 
   Weber Shandwick Financial 
   PR 
   Nick Oborne                        020 7067 0000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 09, 2017 02:00 ET (06:00 GMT)