LONDON (Alliance News) - Low & Bonar PLC Friday said it would acquire Slovakian engineering products producer Texiplast for about GBP16 million in cash, and would launch a GBP20.4 million placing to fund the deal and pursue further growth opportunities.
Texiplast was founded in 1938 and is a manufacturer of soil reinforcement, separation, filtration and erosion control products. In posted revenues of EUR12.7 million and earnings before interest, tax, depreciation and amortization of EUR3.1 million in 2012.
Low & Bonar said the deal is expected to be earnings neutral in the year to November 30, 2014, and to add to earnings thereafter.
The materials company said it would place 29.6 million new shares, just under 10% of its existing share capital, at 69 pence a share. This will raise GBP19.8 million when expenses are subtracted.
"Texiplast is an exciting "bolt-on" acquisition which is aligned to our strategy and highly complementary to our activities in the Civil Engineering sector," Chief Executive Steve Good said in a statement.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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