Press Release
WS Atkins plc divests Lambert Smith Hampton
Tue, 26 Jun 2007
WS Atkins plc (‘Atkins’ or ‘the Group’), the multi-disciplinary consultancy group, is pleased to announce that it has agreed to the sale of its UK-based property agency business Lambert Smith Hampton Limited (‘LSH’) to De Facto 1489 Limited, a company backed by LSH management and Bank of Scotland Integrated Finance (‘BoSIF’) for an enterprise value of £46.5 million, together with earn-out potential for a further £10 million. The sale is subject to certain regulatory approvals and is expected to complete before 31 July 2007.
The LSH sale furthers Atkins’ strategy of focusing on core activities and provides funds for future investment.
On completion of the transaction, £40 million of the consideration will be paid in cash and a further £6.5 million will be satisfied through the issue of a vendor loan note, which will be interest free for three years and thereafter will attract a 16 per cent coupon. An additional amount of up to £10 million will be payable depending on the financial performance of LSH in the year ending 31 March 2008. The additional consideration will be satisfied through the issue of a further vendor loan note on similar terms to the original vendor loan note. The vendor loan notes will rank equally with BoSIF’s investor debt and ahead of loan stock issued to the management team on exit or winding up.
LSH employs around 950 people and in the year ended 31 March 2007 generated revenues of around £81 million with profit before tax included in the Atkins Group results of circa £7.3 million (2005/06: £3.6 million). Gross assets as at 31 March 2007 were approximately £42 million. The profit on disposal is estimated to be approximately £20 million assuming that no additional payments are made by LSH in relation to the performance in the year ending 31 March 2008 under the earn-out.
Chief Executive Keith Clarke said:
"This is a significant transaction as we divest this non-core business. I wish the management of LSH every success in taking the business forward. This deal enables the Group to focus on its core businesses as it looks to further develop capabilities in its principal areas of expertise."
| 26 June 2007 | |
| ENQUIRIES: | |
| Atkins Keith Clarke, Chief Executive Robert MacLeod, Group Finance Director | Tel: 01372 726140 |
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