Acquisition of Schrader-Bridgeport.LONDON--(BUSINESS WIRE)--March 23, 1998--Tomkins PLC (NYSE NYSE See: New York Stock Exchange :TKS TKS Thanks TKS Tokushima, Japan - Tokushima (Airport Code) TKS Time Keeping System (GPS) TKS Target Kill Simulator TKS The Knox School (Victoria, Australia) ), the international manufacturing company, today announced that it has signed an agreement to acquire Schrader-Bridgeport, a private US company, for $187.0 million (112.0 million pounds)(a) in cash. Tomkins will also assume Schrader-Bridgeport's estimated net debt of $68.5 million (41.0 million pounds). The acquisition will be financed from Tomkins' existing cash resources. The transaction is subject to normal regulatory approval and closing is expected to take place in late April 1998. Schrader-Bridgeport, which fits with The Gates Rubber Company and Stant, is a world leader in the design, development and manufacture of fluid control components and subsystems, transportation wheel valves and related aftermarket products. The company has 1,500 employees, with manufacturing operations in the US, Brazil, Mexico, France, Northern Ireland and India. For the year ended December 31, 1997, Schrader-Bridgeport had sales of $175.9 million (105.3 million pounds). The majority of sales are split evenly between the automotive original equipment market and the aftermarket, with the balance of approximately ten percent going to industrial customers. Under US Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , Schrader-Bridgeport earned operating income of $23.3 million (14.0 million pounds) in 1997, adjusted for non-trading and one-off items and before goodwill amortization. As at December 31, 1997 net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". before debt were $70.5 million (42.2 million pounds) and net debt was $69.5 million (41.6 million pounds). Greg Hutchings, Tomkins' Executive Chairman, said: "Schrader-Bridgeport is an excellent acquisition for Tomkins and will complement The Gates Rubber Company and Stant. (a) Currency translates at 1 pound = $1.67 Schrader-Bridgeport has exciting plans, with new products expected to generate above-average sales growth, including its remote tire pressure monitoring system A tire pressure monitoring system (TPMS) is an electronic system to monitor the air pressure inside a pneumatic tire. They are sometimes referred to as remote tire pressure monitoring systems (RTPMS) or simply as Run flat indicators. , developed in Northern Ireland. Schrader-Bridgeport's sales prospects and profit margins will be further enhanced through access to Gates' world-wide infrastructure. This "add-on" acquisition is consistent with Tomkin's strategy to focus on strategic business activities and to create value for shareholders through enhancing earnings in year one and to generate a return on total investment which will exceed the group's cost of capital within three years." Tomkins comprises a broad range of low-risk technology manufacturing companies. Tomkins' US interests include The Gates Rubber Company, Denver, CO, the world's leading manufacturer of power transmission belts and a major producer of hose and connector products. Other interests include, Murray, Inc., Brentwood, TN, one of the leading US producers of power lawnmowers, snow blowers and bicycles; Red Wing Corporation, Fredonia, NY, the largest US manufacturer of private label grocery products; Smith & Wesson Smith & Wesson U.S. gun manufacturer. The company has its roots in an 1852 partnership between Horace Smith (1808–93) and Daniel B. Wesson (1825–1906), who designed and marketed a lever-action, repeating magazine handgun that held a self-contained cartridge. Corporation, Springfield, MA, manufacturer of handguns, handcuffs hand·cuff n. A restraining device consisting of a pair of strong, connected hoops that can be tightened and locked about the wrists and used on one or both arms of a prisoner in custody; a manacle. Often used in the plural. tr.v. and the Identi-Kit system; and Tomkins Industries, Dayton, OH, a leading manufacturer of components for residential, commercial, and industrial buildings, materials handling and the transportation industry. Tomkins shares trade in the US in ADR ADR - Astra Digital Radio form (each equal to four ordinary shares) on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol TKS; its ordinary shares are listed on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . CONTACT: Tomkins PLC Anthony Spiro 011-44-181-871-4544 or Taylor Rafferty Associates Brian J. Rafferty 212-889-4350 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion