Scapa Group PLC Acquisition (4471N)
August 09 2017 - 1:00AM
UK Regulatory
TIDMSCPA
RNS Number : 4471N
Scapa Group PLC
09 August 2017
9 August 2017
Scapa Group plc
Acquisition of Markel Industries
Scapa Group plc ("Scapa") (AIM: SCPA), a global supplier of
bonding solutions and manufacturer of adhesive-based products for
the healthcare and industrial markets, is pleased to announce that
it has acquired the entire share capital of Markel Industries,
Controlled Environment Equipment Corp and CMark Films, LLC
(together the "Company" or "Markel") for a total purchase price of
USD$10 million.
Markel is a leading North American manufacturer of adhesive
floor mats and tacky rollers for use in medical clean rooms,
electronic and industrial assembly areas, construction site and
sports venues.
As at 31 December 2016, the unaudited gross assets acquired were
USD$1.2 million. Underlying adjusted EBITDA for the year ended 31
December 2016 was USD$1.7 million. The acquisition is expected to
be earnings enhancing in the first full year and will be funded
from existing cash reserves and bank facilities.
The Board believes the acquisition of Markel will give the
following benefits:
-- Markel's largely North American customer base has a similar
profile to Scapa's, offering cross-selling opportunities
-- Markel's high quality core clean room contamination
prevention products will enhance Scapa's current products offerings
in Europe
-- Meaningful overlap in supply chain and manufacturing
technology as well as proximity of Markel's manufacturing sites to
Scapa offer an opportunity for efficiencies
Commenting on the acquisition, Heejae Chae, the Group Chief
Executive Officer of Scapa, said:
"The acquisition of Markel is a part of our Industrial strategy
to further drive the Return on Capital Employed through
concentration on our core customers and markets as well as
optimisation of our manufacturing assets."
For further information:
Scapa Group plc
Heejae Chae - Chief Executive
Graham Hardcastle - Finance
Director 0161 301 7430
Numis Securities Limited
(Nominated Adviser and Joint
Broker)
Richard Thomas/Mark Lander 020 7260 1000
Berenberg
(Joint Broker)
Chris Bowman 020 3207 7800
Weber Shandwick Financial
PR
Nick Oborne 020 7067 0000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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