| Wed 1 Aug 2001, 0:00 | | Barloworld Expands International Laboratory Busine |
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International industrial brand management company Barloworld has today
announced the purchase by its scientific division of a group of laboratory
equipment companies from Protean Limited, part of
United States Filter Corporation (USFilter), a subsidiary of Vivendi
Environnement, for a consideration of GBP21 million (R245 million). The
acquisition is effective from 1 August 2001 and will be funded from existing
Barloworld resources.
The operations of Protean will merge with Barloworld's UK-based, market
leading laboratory equipment business, Bibby Sterilin, which is
headquartered at Stone in Staffordshire. The resultant combined businesses
will add one-third to the size of Barloworld's laboratory business.
The companies acquired in the deal comprise: Carbolite Limited, Jenway
Limited, LIP Limited, Techne Limited and Techne Inc. Also included in the
purchase are various sales subsidiaries in Germany and the USA.
Tony Phillips, Chief Executive Officer of Barloworld, comments that "This
acquisition supports our growth strategy of expanding both our brands and
our geographic footprint. The fit between Bibby Sterilin and the Protean
companies is excellent and we look forward to realising the many
opportunities the enlarged business presents in terms of access to markets
and improved efficiencies."
Phillips also noted that, consistent with Barloworld's value based
management philosophy, the expanded laboratory business is expected to
generate returns in excess of the company's cost of capital, measured in
terms of cash flow return on investment (CFROI). Barloworld's CFROI cost of
capital hurdle is 8% in real terms.
Background information:
Barloworld in laboratory equipment
Barloworld's laboratory equipment operations are market leaders in the
United Kingdom and a significant presence in many international markets in
glass and plastic laboratory products and related scientific equipment.
Products are sold under leading brand names, which include Pyrex, Quickfit,
Sterilin, Azlon and Stuart. With manufacturing and distribution centres at
Stone in Staffordshire, Aberbargoed in South Wales, Rochester in New York
State, Barcelona, Paris and Milan, the business employs 825 people. It
forms part of Barloworld's scientific operations, which posted profits
before interest and tax for the year to 30 September 2000 of R124 million
(GBP10.6 million) on revenues of R1 472 million (GBP125.7 million).
Protean
The acquired companies, which employ some 365 people, manufacture a range of
plastic and science equipment products for scientific and technical markets,
including sectors such as life science research and materials science. The
total turnover of the acquired companies was GBP20 million (R235 million)
for the financial year to December 2000 with a PBIT of GBP1.9 million (R22
million), and net assets of GBP9 million (R105 million).
The companies have their primary manufacturing operations in the UK and a
number of subsidiaries in the USA and Germany.
Specific Protean company details are:
* LIP
* Manufacture and distribution of disposable plastics for medical markets.
* Based in Bradford in N. England.
* 71 employees.
* Carbolite
* Manufacture of furnaces and ovens for laboratory and technical
applications.
* Based in Hope Valley, Yorkshire
* 124 employees.
* Jenway
* Manufacture of spectrometers and ion measurement devices for general
scientific measurement.
* Based in Essex, SE England.
* 81 employees.
* Techne
* Manufacture of laboratory equipment specialising in Biotechnology
applications.
* Based in Cambridge, SE England and Princeton, New Jersey
* 92 employees.
These companies were acquired in 1997 by Culligan International as part of
its acquisition of Protean plc. Culligan was subsequently acquired in 1998
by United States Filter Corporation, which itself was acquired in 1999 by
Vivendi Universal. The companies now form part of Vivendi Environnement, a
water and environment specialist. They were considered to be non-core to
Vivendi Environnement following a review of operations, which took place in
2000.
Barloworld Limited
Barloworld Limited has a primary listing on the JSE Securities Exchange
South Africa, employs some 24,000 people in 32 countries and had a turnover
of R22 billion (GBP1.9 billion) for the year ended 30 September 2000. It is
also listed on the London Stock Exchange and various European exchanges. The
company's share code is BAW. For more information visit www.barloworld.com
Exchange rates
A rate of GBP1:R11.71 has been used throughout this announcement for
exchange rate comparisons.
CONTACT DETAILS:
Mark Drewell, Head of Corporate Communication, Barloworld Limited
Tel:+27 11 4451204, e-mail: mdrewell@barloworld.com
Peter Maybury, Chief Executive Officer, Barloworld Scientific Limited
Tel: 01785 - 812121
Fax: 01785 - 812532
e-mail: pmaybury@barlow-sci.com
