Braemar Shipping Services PLC Disposal of Braemar Response (4891D)

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RNS Number : 4891D

Braemar Shipping Services PLC

10 October 2018

10 October 2018

BRAEMAR SHIPPING SERVICES PLC

("Braemar" or the "Company")

Disposal of Braemar Response

Braemar Shipping Services plc (LSE: BMS), a leading international provider of broking, financial, consultancy, technical and logistics services to the shipping, marine, energy, offshore and insurance industries, is pleased to announce that, in line with its previously announced strategy, it has completed the disposal of its incident response business, Braemar Response, to Grupo Ambipar (the "Disposal"). The sale is for a total consideration of GBP774,000.

The Response business was part of Braemar's Technical division and is an environmental consultancy, contracting and training service provider in the marine, oil & gas, road and rail industries.

Background to this transaction

As previously announced, a decision was made by the Board of Directors earlier this year to divest Braemar Response. It contributed strongly during its time in the Group, but it was felt that the business would benefit from scale and the prioritisation of capital requirements within Braemar led the Board to believe that it would benefit from having an alternative owner.

Details and financial impact of the transaction

The consideration for the Disposal comprises an initial cash payment of GBP400,000 with a further GBP374,000 payable within twelve months of Completion.

Braemar purchased the business in 2006 for GBP900,000 since which time it has generated GBP4,250,000 in dividend income. During the year ended 28(th) February 2018 Braemar Response posted sales of GBP3,896,000 and a loss before taxation of GBP595,000.

Grupo Ambipar is a Brazilian environmental services group with over 3,000 employees.

James Kidwell, CEO of Braemar, commented: "We are delighted to have found an excellent home for Braemar Response in Grupo Ambipar. The disposal allows Braemar to focus on delivering its strategy for its core consultancy and professional services."

Ends

For further information, contact:

 
 Braemar Shipping Services                       Tel [phone] 
                                                                4100 
 James Kidwell, Chief Executive 
 James Hayward, Interim Finance Director 
 Peter Mason, Company Secretary 
 
 Stockdale Securities                            Tel [phone] 
                                                                6100 
 Robert Finlay / Antonio Bossi, Corporate 
  Finance 
 Henry Willcocks / Fiona Conroy, Corporate 
  Broking 
 
 Buchanan                                        Tel [phone] 
                                                                5000 
 Charles Ryland / Stephanie Watson / Tilly      Tel + 44 (0) 20 3405 
  Abraham                                                       1035 
  Park Partners (Corporate Finance Advisors) 
  Jon Howells 
 

Notes to Editors:

About Braemar Shipping Services plc

Braemar Shipping Services plc is a leading international provider of knowledge and skill-based services to the shipping, marine, energy, offshore and insurance industries. Founded in 1972, Braemar employs approximately 750 people, post this transaction, in more than 60 locations worldwide across its Shipbroking, Financial Technical and Logistics divisions.

Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.

For more information visit www.braemar.com

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October 10, 2018 02:00 ET (06:00 GMT)