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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Blueheath | LSE:BLH | London | Ordinary Share | GB00B01TND9 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 28.87 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8086K Blueheath Holdings PLC 08 April 2005 For Immediate Release 8th April 2005 Blueheath Holdings plc Acquisition of CTM Wholesale Ltd Blueheath, the national delivered wholesaler which uses sophisticated proprietary technology to offer a substantial cost advantage over established players in the #16.4 billion grocery wholesale sector, is today pleased to announce the acquisition of CTM Wholesale Limited ("CTM") for up to #4.9 million in cash (the "Acquisition"). CTM is a traditional delivered wholesale business to the grocery wholesale market and also has a small cash and carry operation. It operates from a single warehouse depot located in Wrexham, Wales. For the year ending 2 April 2005, CTM is expected to report turnover of #45.0 million, operating profit of #0.5 million and net assets of #3.4 million. Of the total cash consideration, #3.9 million is payable on completion, with the remaining #1.0 million paid into a retention account to be released on the anniversary of completion of the Acquisition dependent on, amongst other matters, the net operating assets of CTM as at completion. Rationale for and benefits of, the CTM Acquisition: O CTM represents an opportunity to supplement the organic growth of the Company through the acquisition of a traditional regional delivered wholesaler. O CTM currently operates with stock levels of approximately 22 days. By utilising Blueheath's sophisticated proprietary technology, the Directors of the Company anticipate that this can be significantly reduced down towards the Company's normal operating levels, thereby releasing significant working capital. O CTM supplies delivered wholesale to around 1,000 retail outlets within Wales, providing a complementary fit with Blueheath's existing customer network. O The Directors anticipate the Enlarged Group will be able to achieve improved operating margins through combined buying volumes, the application of Blueheath's technology and business processes to the CTM operation, and the integration of central overheads. Commenting on the acquisition, Douglas Gurr, Chief Executive of Blueheath said: "We are delighted with the acquisition of CTM which represents an important step in our strategy of building a leading national delivered wholesaler. The combination of CTM's excellent customer franchise and strong local management with Blueheath's unique technology-driven business model offers a number of complementary synergies to the enlarged group and further strengthens Blueheath's position in the delivered wholesale market." Financing of the Acquisition In order to finance the Acquisition the Company is proposing to raise #6,000,003.50 (before expenses) through a vendor placing and cash placing of 3,870,970 new ordinary shares ("New Ordinary Shares") by Evolution Securities (as agent for the Company) with institutional investors (the "Placing"). Of the total cash consideration payable by Blueheath, #3.9 million will be funded by the net proceeds of the vendor placing of 2,516,130 New Ordinary Shares, which will be paid directly to the vendors. The balance of the cash consideration will be satisfied by the net proceeds of the cash placing of 1,354,840 New Ordinary Shares. The placing price of 155p pence per New Ordinary Share represents a discount of 4.62 per cent to the closing mid market price of 162.5 pence per Ordinary Share at the close of business on 7 April 2005, being the latest practicable date prior to this announcement. The New Ordinary Shares represent approximately 9.34 per cent of the Company's existing issued share capital and approximately 8.54 per cent. of the Company's issued share capital following the Placing. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares of the Company. The Placing has been fully underwritten by Evolution Securities and is conditional on, inter alia, the Admission of the New Ordinary Shares to trading on the Alternative Investment Market of the London Stock Exchange ("AIM"). Accordingly, application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and dealings in the Placing Shares will commence on AIM on 14 April 2005. Blueheath Holdings plc Douglas Gurr, Chief Executive Tel: 020 7689 2455 Simon Mindham, Finance Director Tel: 020 7689 2464 Buchanan Communications Tel: 020 7466 5000 Mark Edwards / Nicola Cronk / Tom Carroll email: tomc@buchanan.uk.com Evolution Securities Tel: 020 7071 4300 Michael Brennan / Bobbie Hilliam Notes to editors: Blueheath is a wholesaler of groceries to convenience stores in the #16.4 billion UK grocery wholesale sector. The Group sells and arranges the distribution of approximately 3,100, primarily ambient, product lines to over 1,600 independent and multiple retail and leisure outlets within the UK. Blueheath's innovative technology-driven business model is founded on the basic principles of stripping out unnecessary supply chain costs and overheads and passing on financial and operational benefits to customers. This enables Blueheath to offer customers a wholesale delivery service of groceries at close to Cash & Carry prices. Blueheath achieves cost savings in three ways: 1. Operating on low stock levels through the use of sophisticated, proprietary stock prediction technology. 2. Using spare distribution capacity through its partnership with British Bakeries Ltd and other operators. 3. The extensive use of process automation to minimise administration costs. This information is provided by RNS The company news service from the London Stock Exchange END ACQEAPLPEEASEEE
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