TP Group PLC Sale of TPG Engineering Ltd. (6571D)
October 29 2020 - 8:09AM
UK Regulatory
TIDMTPG
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: 01753 285 810
Phil Cartmell, Chief Executive Officer
Derren Stroud, Chief Financial Officer
www.tpgroup.uk.com
Cenkos Securities plc Tel: 020 7397 8980
Stephen Keys / Mark Connelly / Callum
Davidson
www.cenkos.com
Vigo Communications Tel: 020 7390 0230
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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END
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