News Column

Progility Acquires Starkstrom Group For GBP9.7 Million

July 14, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Progility PLC said Monday that it had acquired Starkstrom Group Ltd for a total of GBP9.7 million, including GBP7.0 million in cash and GBP2.7 million in zero coupon loan notes, from the its owner managers.

Starkstrom is the holding company of UK-based project management services company Starkstrom Ltd. Starkstrom designs, builds and supplies medical equipment. It posted a pretax profit of GBP1.8 million, from revenues of GBP13.7 million, in the year to end-May 2013.

Progility said that the acquisition formally establishes its healthcare division as a provider of project management services to hospitals.

"As a project management focused business with a long established and well recognised brand in its market, Starkstrom is a platform around which we can build our healthcare division," Executive Chairman Wayne Bos said in a statement.

The loan notes will be repayable in four half-yearly tranches in the two years following completion. They will be convertible into new shares at a prevailing market price if not paid.

The cash potion of the consideration will be finance by the issue of GBP7.2 million in recently created redeemable loan stock to DNY Investments Ltd.

Ahead of the acquisition metal fabricating subsidiary F1 Manufacturing Ltd de-merged from Starkstrom. Starkstrom acquired assets from the subsidiaries assembly division, and F1 will continue to supply certain metalwork to Starkstrom.

Shares in Progility were trading up 18% at 6.50 pence Monday morning.

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Source: Alliance News

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