TP Group PLC Sale of TPG Engineering Ltd. (6571D)

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RNS Number : 6571D

TP Group PLC

29 October 2020

29 October 2020

TP Group plc

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

Sale of TPG Engineering Ltd.

TP Group (AIM: TPG), the providers of mission-critical solutions for a more secure world, announces that, following a strategic review of the Group's engineering capabilities in relation to its wider strategy, the Board has agreed to sell its Manchester-based subsidiary TPG Engineering Ltd. ("TPG Engineering") to Rcapital.

The Board believes that the sale will maximise shareholder value by allowing TP Group to focus on its strategy to deliver high-technology consulting, digital solutions and bespoke engineering solutions to critical programmes in the global space, defence and energy sectors. These include the continuing work on clean energy solutions, carbon capture and hydrogen fueling systems at the gas technology centre in Portsmouth.

The sale has been agreed for a nominal cash consideration of GBP1.00. In the year ended 31 December 2019 TPG Engineering made losses before taxation of GBP1.6 million and as at 30 June 2020, TPG Engineering had net assets of GBP1.7 million.

Rcapital

Rcapital provides private investment, commercial expertise and hands-on support to transform and grow businesses. Working together with management teams Rcapital focusses on driving performance and delivering results. It prides itself on being more than a growth and turnaround investor, seeing potential in complex situations and working with management teams to share in success.

Since 2004, Rcapital has made over 70 portfolio investments from a wide range of industries and geographic spread. Rcapital structures straightforward transactions to meet the needs of sellers, management teams, employees and stakeholders to resolve complex situations.

TPG Engineering Ltd.

TPG Engineering, based in Greater Manchester, is a designer and manufacturer of large, high-integrity gas and fluid management equipment and other fabricated structures in specialist metals, principally for the oil and gas market.

The business's equipment is relied upon by international customers to manage their dangerous or valuable process fluids safely and efficiently. TPG Engineering has more than 60 years of heritage and is accredited to multiple quality and defence standards. The business's customers are located worldwide and include major energy companies and first tier prime contractors.

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

"This agreement with Rcapital means that TPG Engineering and its staff have a good opportunity to build upon their core strengths and relationships in the oil and gas sector alongside like-minded businesses in Rcapital's portfolio, and we wish the team in Dukinfield every success in their new venture with their new owners."

Chris Campbell, Partner at Rcapital, also commented:

"We are excited about the opportunity that this acquisition brings. Whilst the business's core markets have been impacted by Covid-19, the business has solid fundamentals, built on quality products and high levels of customer service.

This acquisition complements other investments in the Rcapital portfolio, which will help support the management team, who are motivated to drive the business forward."

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

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] 
  Stephen Keys / Mark Connelly / Callum 
   Davidson 
  www.cenkos.com 
 
  Vigo Communications                       Tel: [phone] 
  Jeremy Garcia / Charlie Neish 
  www.vigocomms.com 
 

Notes to Editors

TP Group delivers complex equipment, software and services for mission, business and safety critical applications in defence, space, intelligence & security and energy sectors. With more than 400 people in 6 European countries, it serves global customers through long-term contracts. The Group's shares have been traded on AIM since July 2001.

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October 29, 2020 09:09 ET (13:09 GMT)