TP Group PLC Acquisition of Westek Technology Ltd (2666G)

TIDMTPG

RNS Number : 2666G

TP Group PLC

05 November 2018

5 November 2018

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upo5n the publication of this announcement, this inside information is now considered to be in the public domain.

TP Group plc

("TP Group" or the "Company" or the "Group")

Acquisition of Westek Technology Ltd.

Acquisition adds new technologies and capabilities, customers and international growth potential

TP Group (AIM: TPG), the specialist services and engineering group, is pleased to announce the acquisition of the entire issued share capital of Westek Technology Limited ("Westek") for an initial consideration of GBP3.0 million, subject to adjustment to reflect Westek's net asset position at completion, with a maximum additional GBP0.5 million payable on delivery of certain transition activities within 12 months following completion of the acquisition.

The acquisition of Westek will be earnings accretive to the Group for the full financial year ending 31 December 2019, and will be funded from existing cash resources.

Westek is a leading provider of rugged, high performance computer servers and ancillary equipment for military and industrial customers predominantly in the UK, Europe and the United States, many of whom are not currently supplied by TP Group. The business operates from a facility in Wiltshire.

The acquisition of Westek is a strategic addition of proven capability in the design and manufacture of advanced electronic systems, providing specialist high-performance products. This capability also offers vertical integration with the rugged control systems already delivered with TP Group's packaged equipment offerings.

The Westek business will be managed within, and contribute to, the Group's existing Technology and Engineering business stream.

Westek reported revenues of GBP3.5 million and profit before tax of GBP0.2 million in the financial year ended 31 December 2017. As at 31 December 2017, Westek had gross assets of GBP2.3 million.

Harry Hunter and Nick Wilson, both directors within Westek, will remain with the business and continue to lead activities and operations.

Phil Cartmell, Chief Executive Officer of TP Group, commented:

"We are delighted to welcome Westek into the Group, continuing our growth in high-technology packaged systems and equipment.

"This acquisition complements our existing activities in complex, rugged equipment, yet in a different application area and with different customers. The integration of Westek into the Group will, I believe, add significantly to their outreach and accelerate their growth whilst contributing to the success of TPG.

"We are also pleased that the existing directors, Harry and Nick, will stay with the business post-acquisition to work closely with us in successfully delivering a number of current and new projects."

For further information, please contact:

 
 TP Group plc                      Tel: [phone] 
 Phil Cartmell, Chief Executive 
  Officer 
 Derren Stroud, Chief Financial 
  Officer 
 www.tpgroup.uk.com 
 
 Cenkos Securities plc             Tel: [phone] 
 Mark Connelly / Callum Davidson 
 www.cenkos.com 
 
 Vigo Communications               Tel: [phone] 
 Jeremy Garcia / Fiona Henson 
  / Charlie Neish 
 www.vigocomms.com 
 

Notes to Editors

TP Group designs and develops advanced technologies, engineers complex equipment and systems, and provides support throughout their operational life. The Company's shares have been traded on AIM since July 2001.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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November 05, 2018 02:00 ET (07:00 GMT)