Acquisition of DSG Rental (1000U)

TIDMNBI

RNS Number : 1000U

Northbridge Industrial Services PLC

16 December 2011

16 December 2011

NORTHBRIDGE INDUSTRIAL SERVICES PLC

("Northbridge" or the "Group")

Acquisition of DSG Rental NV

Northbridge, the industrial services and rental company, is pleased to announce that it has completed the acquisition of the entire share capital of DSG Rental NV ("DSGR"), a rental equipment business based near Antwerp in Belgium (the "Acquisition") for a total consideration of up to EUR2.9 million.

DSGR was incorporated in 2006 and specialises in the hire of containerised transformers and switchgear on a global basis. DSGR rents out medium and low voltage transformers at various capacities with voltages from 230v to 36000v. The containers are rapidly deployable and the capacity of transformers and switches can be adapted according to the specific requirements of each client. DSGR's main customer base is industrial companies, other rental companies and international power projects in Europe, Africa and the Middle East. The product portfolio is complementary to Northbridge's existing transformer and loadbank rental equipment.

The business has grown substantially since incorporation. Revenue in the 12 months ended 30 June 2011 was EUR1.8 million, predominately generated from rental, and normalised EBITDA was EUR1.1 million.

The net cash consideration payable by Northbridge on completion is EUR2.6 million and there is a further deferred consideration of EUR300,000 payable after four months. The consideration will be satisfied from the Group's existing cash resources and bank facilities.

Commenting on the Acquisition, Eric Hook, Chief Executive of Northbridge, said:

"We are very pleased to have completed this acquisition, which is the second this week and which demonstrates the ongoing commitment to our business strategy. DSGR is an excellent fit with Northbridge's existing business and the acquisition will serve to consolidate our operations in Europe as well as act as a base from which we can meet the growing needs of our clients across Europe."

For further information:

 
 Northbridge Industrial Services plc 
  Eric Hook, Chief Executive Officer 
  Craig Robinson, Finance Director                   01283 531645 
 Arbuthnot Securities Limited (Nominated Adviser 
  & Broker) 
  Antonio Bossi 
  Ed Groome                                         020 7012 2000 
 Buchanan Communications 
  Charles Ryland 
  James Strong                                      020 7466 5000 
 

About Northbridge:

Northbridge Industrial Services plc hires and sells specialist industrial equipment to a non-cyclical customer base. With offices or agents in the UK, US, Dubai, Germany, France, Australia, Singapore, India, Brazil, Korea and Azerbaijan, Northbridge has a global customer base. This includes utility companies, the oil and gas sector, shipping, construction and the public sector. The product range includes loadbanks, transformers, generators, compressors and oil tools. Northbridge was admitted to AIM in 2006 since when it has recorded increased earnings and dividends based on providing a high level of service, responsiveness and flexibility to customers. It has grown by acquisition of companies in the UK, Dubai, Azerbaijan and Australia and through investing further in those acquired companies to make them more successful. Northbridge continues to seek suitable businesses for acquisition across the world.

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQDELFFFLFXFBZ