Acquisition

24 Mar 2006 14:00

Morgan Sindall PLC24 March 2006 Morgan Sindall plc ("Morgan Sindall" or "the Group") £23.3 million acquisition of Gleeson MCL Morgan Sindall plc announces that it has acquired Gleeson MCL Limited, thebuilding and civil engineering infrastructure specialist for the rail industry,from M J Gleeson Group plc for an initial consideration of £23.3 million whichis subject to adjustment based on final net assets at completion. Gleeson MCL has extensive experience of new build, refurbishment and maintenanceof stations, bridges and other rail assets for its clients that include: LondonUnderground Ltd, Network Rail, Tube Lines, Metronet, Dockland Light Railways andLocal Authorities. Gleeson MCL's audited accounts for the year to 30 June 2005 disclose anoperating profit of £1.8m and a pre-tax profit of £2.1m. As at 30 June 2005,Gleeson MCL had gross assets of £18.1m, including net cash of £6.1m. Gleeson MCL, which will become Morgan Est Rail, will significantly expand therail capability of Morgan Est, Morgan Sindall's Infrastructure Servicesdivision. It will also be able to expand its offering to the sector by workingalongside Morgan Est's tunnelling team. Morgan Sindall will be retaining thesenior management team of Gleeson MCL. Morgan Sindall aims to be a market leader in all of the sectors in which itoperates, and has achieved this position in its Fit Out and Affordable Housingdivisions. The acquisition of Gleeson MCL goes some way to furthering this goalfor the Infrastructure Services division. The consideration of £23.3 million will be paid from Morgan Sindall's existingresources and the Directors believe the acquisition will be immediately earningsenhancing. Paul Smith, Chief Executive of Morgan Sindall, commented: "We have a record of acquiring companies and successfully integrating them intothe Group and in so doing developing the scale and capabilities of ouroperations. This acquisition strengthens Morgan Est's presence in the railsector where we believe there will be sustained growth opportunities." 24 March 2006 Enquiries: Morgan Sindall Tel: 020 7307 9200John Morgan, Executive ChairmanPaul Smith, Chief ExecutiveCollege Hill Tel: 020 7457 2020Alex Walters/Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange