Acquisition

 

TIDMNBI 
 
RNS Number : 7938Q 
Northbridge Industrial Services PLC 
20 April 2009 
 

For Immediate Release20 April 2009 
 
 
Northbridge Industrial Services Plc. 
("Northbridge" or "The Company") 
 
 
ACQUISITION OF 66.67% OF THE INTEREST IN THE SHARE CAPITAL OF TYNE TECHNICAL 
EQUIPMENT RENTAL SERVICES LLC ('TTERS') 
 
 
Northbridge Industrial Services Plc is today pleased to announce the acquisition 
of 66.67% of the interests of Tyne Technical Equipment Rental Services LLC 
("TTERS") 
 
 
TTERS is a Dubai registered company whose principal business is the rental of 
generators and the sale of associated services to the infrastructure and the oil 
& gas industries in the United Arab Emirates. 
 
 
TTERS was formed in 2004 by the current shareholders who will remain with the 
business. Its unaudited accounts for the year ended 31 December 2008 reported a 
turnover of GBP600,000 and a net profit before tax of GBP57,000. Net assets of 
the business at 31 December 2008 were GBP186,000. 
 
 
The shares of TTERS are being acquired by RDS (Technical) Ltd ("RDS") a wholly 
owned subsidiary of Northbridge Middle East FZE ("NME"), our existing business 
in the region.  As part of the transaction RDS will provide up to GBP250,000 by 
way of an intercompany loan for further investment into the TTERS hire fleet. 
 
 
The total consideration payable will be GBP170,000, which will be satisfied by 
GBP62,000 in cash and by the issue of 80,000 new ordinary shares at a price of 
135 pence per ordinary share. Additionally, Northbridge has the option to 
acquire the remaining 33.33% of the interests in the company on 13 April 2011 
for a price based on a multiple of net profits in the preceding 12 months, 
subject to a maximum cap of GBP680,000 (total GBP850,000). At this level of 
consideration the profit before taxation of TTERS would be GBP250,000. The 
shares issued to the vendors as consideration are to be held for a minimum 
period of 24 months. 
 
 
 
 
The 80,000 new ordinary shares will rank pari passu with the existing ordinary 
shares of the Company, and admission to trading in the new shares is expected to 
commence on 24 April 2009.  Following the issue of these shares, the Company 
will have 7,710,149 ordinary shares in issue of which 152,150 are held in 
treasury.The vendor, Geoff Forster and his son Jonny, have agreed new contracts 
of employment together with restrictive covenants for 3 years and 2 years 
respectively. 
 
This acquisition will help to further Northbridge's strategy to acquire and 
develop companies which sell and hire industrial equipment. In addition, it will 
complement our existing activities in the area and expand the geographical area 
serviced by our previous and similar acquisition of RDS. 
 
 
For more information please contact: 
+---------------------------------------+----------------------------------+ 
| Northbridge Industrial Services plc   |                   01283 531 645  | 
| Eric Hook, CEO                        |                                  | 
+---------------------------------------+----------------------------------+ 
| Charles Stanley Securities (Nominated |                   020 7149 6000  | 
| Adviser)                              |                                  | 
| Mark Taylor / Freddy Crossley         |                                  | 
+---------------------------------------+----------------------------------+ 
| Buchanan Communications      020 7466 |                    020 7466 5000 | 
| 5000                                  |                                  | 
+---------------------------------------+----------------------------------+ 
| Charles Ryland / Isabel Podda         |                                  | 
+---------------------------------------+----------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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