17 October, 2006
Acquisition of Lux Traffic Controls Limited
Ashtead Group plc, the equipment rental group serving principally the US and UK non-residential construction markets, announces that its UK subsidiary Ashtead Plant Hire Company Limited, which trades as A-Plant, has acquired Lux Traffic Controls Limited (“Lux”) for a consideration of £15.5 million.
Lux, which was established in 1966 by Laurence Lux, is a leading supplier of traffic systems on a rental basis from a network of 44 locations throughout Great Britain. In the year ended 31 July 2006, Lux reported revenues of £19.1million, EBITDA of £1.8 million and pre-tax profits of £0.9 million. The book value of its net assets at 31 July 2006 was £4.6 million.
The acquisition consideration is subject to downwards only adjustment, on a pound for pound basis, to the extent that net assets at 30 September 2006 are less than £4.25 million. Lux’s operations will be integrated with those of A-Plant offering significant potential for back office cost savings. In addition it is estimated that non-recurring employment and other costs relating to the majority shareholders, Mr and Mrs Lux, who will not be joining A-Plant amounted to £0.3 million in the year ended 31 July 2006.
Commenting on the acquisition George Burnett, chief executive of Ashtead Group plc said:
“The acquisition of Lux, when combined with A-Plant’s existing traffic systems rental business, will make A-Plant the largest provider of traffic systems on a rental basis in the UK and significantly extends our penetration of this attractive market”
Sat Dhaiwal, chief executive of A-Plant, added:
“I am delighted to welcome the staff of Lux to A-Plant where traffic systems rental will now form an important business within our Specialist division and make us clear market leader with pro forma annual revenues in excess of £26m. This acquisition forms part of our strategic plan to develop our Specialist Product Division and to be a market leader in our chosen products.”