Acq of Valley Redi-Mix Co
20 Junho 2003 - 4:01AM
UK Regulatory
RNS Number:5618M
Ennstone PLC
20 June 2003
ENNSTONE plc
("Ennstone" or "the Company")
Acquisition of Valley Redi-Mix Company Inc.
("Valley Redi-Mix")
Ennstone is pleased to announce that its U.S. subsidiary, Ennstone Inc., has
today purchased the entire issued share capital of Valley Redi-Mix for a total
consideration of $9,175,000 plus net current assets at completion (estimated to
be $615,000). $4,175,000 of the consideration is deferred, payable in eight
annual instalments of $500,000 plus a final instalment of $175,000.
Valley Redi-Mix is located to the northwest of Ennstone's existing Virginia
ready mix concrete business. Valley Redi-Mix supplies approximately 100,000
cubic yards of concrete per year and comprises two ready mix plants in Front
Royal and Stephens City, south of Winchester.
Ennstone's Board has received an independent valuation of Valley Redi-Mix's
principal asset (being the Front Royal concrete plant) which was valued at
approximately $4 million. In addition, to the extent that Valley Redi-Mix's net
current assets are below $615,000 at completion, the consideration payable by
Ennstone will be reduced by the same amount.
Due to the fact that Valley Redi-Mix is a US incorporated company and has been
exempt from the requirement to publish audited financial statements, it is not
possible to state with complete accuracy the historic profits attributable to
the business. However, the Board expects this business to offer significant
benefits.
The acquisition of Valley Redi-Mix follows Ennstone's acquisition of Mobile
Concrete Corporation Inc. in January 2003 and continues the Company's strategy
of consolidation of its operations and market presence within the Virginia area.
Vaughan McLeod, Chairman, commented:
"We are pleased to have completed the Valley Redi-Mix acquisition which should
deliver early synergy benefits and enhance our regional presence in this
important Northern Virginia market. The structure of the transaction has
enabled us to achieve another excellent low risk bolt on acquisition."
ENQUIRIES:
Ennstone plc 01332 694 444
Vaughan McLeod, Chairman
College Hill 020 7457 2020
Mark Garraway
Matthew Gregorowski
Notes To Editors
Ennstone operates a number of companies in the UK and US involved in the
production and sale of aggregates and related building materials.
In March, the Company reported a 22% increase in turnover to #77.0 million and a
23% increase in Group operating profit to #8.9 million for the year ended 31
December 2002.
On 17 June the Company completed the acquisition of T&T Aggregates Limited in
the UK for approximately #2.3 million.
This information is provided by RNS
The company news service from the London Stock Exchange
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