CEPS PLC - Merger of Davies Odell with Vale Brothers
("CEPS" or the "Company")
The Board of CEPS is pleased to announce that its subsidiary company, Davies Odell Limited ("Davies Odell"), has undertaken a merger with Vale Brothers Limited ("Vale Brothers"). This merger has been achieved by the incorporation of a new company, Vale Brothers Holdings Limited ("VBH"), which has acquired 100% of the share capital of both Davies Odell and Vale Brothers.
Davies Odell has of late been loss-making and despite much effort and investment has been unable, to date, to move into sustained profitability.
Vale Brothers is larger in terms of turnover than Davies Odell (for the year ending
The Directors believe that there will be a number of economies of scale which can be achieved by combining Davies Odell with Vale Brothers as well as the potential for development of new products marketed by the enlarged sales team. In addition, the shareholders of VBH are firmly of the view that opportunities will materialise in the medium term to consolidate the market segments in which it operates.
The purchase by CEPS of the 15% minority shareholding in Davies Odell from
As an addition to this announcement, it is important, and useful, to note that the merger of Davies Odell with Vale Brothers has completed the recent restructuring of the CEPS Group which commenced in
This was followed, in
The Directors believe that the merger, as set out above, of Davies Odell with Vale Brothers will produce significantly better results than Davies Odell has done historically on its own.
As a result of the restructuring, the CEPS Group now comprises three subsidiaries, and an associate stake in a business, which the Directors believe is positioned for improved results.
The announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors of the Company accept responsibility for the content of this announcement
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Cairn Financial Advisers LLP
James Caithie /
+44 20 7213 0880
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identiﬁed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reﬂect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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