Hallin makes first acquisitionNews // September 2, 2008
Hallin Marine has†announced that it has acquired the entire issued share capital of Prospect Flow Solutions Ltd.
Prospect is an engineering consultancy service company to the energy sector, with a strong track record in analysis and design for subsea, offshore and onshore projects.
Prospect was formed in 1999 and employs some 40 people, based in offices in Aberdeen, Derby, Stavanger and Houston. It is established as a leading engineering solutions provider to the oil, gas and renewable energy sectors and is a specialist in computer-aided engineering.
The acquisition of Prospect gives Hallin a growing and successful subsea engineering consultancy business. It will give the Company exposure to projects at the early stage of development and, in the future, will enable Hallin to offer its clients total solution packages. Prospect will benefit from being part of a well managed and financed group and the access to Hallinís clients, especially in the Asia Pacific region, where it is not currently represented.
The acquisition of Prospect is for an initial consideration of £3 million, consisting of £1.5 million in cash, financed from existing cash balances, and Hallin shares to the value of £1.5 million, being 887,574 ordinary 1p shares in the company, issued at a price of†169 pence per ordinary share.
An additional consideration of up to £1,650,000 will be payable based on material growth in the financial performance of Prospect over the period to 31 December 2010.†
Prospectís unaudited financial statements for the 12 months to 31 December 2007 showed turnover of £2,531,000 and operating profits of £208,000.
Prospectís chief executive and management team will continue to run the business and its name will not change, except to be branded as part of the Hallin group. All the senior management team have signed two year service contracts.
Following the issue of the Consideration Shares, the company will have 41,202,574 ordinary 1p shares in issue. The company has made application for the Consideration Shares to be admitted to trading on AIM, and dealings in the Consideration Shares are expected to commence on 3 September 2008.