Libuda : GoIndustry
GoIndustry plc on AIM 5th January 2006
by: ayzy4 (50/M/Neverland)
Long-Term Sentiment: Buy 12/14/05 02:43 pm
Msg: 238696 of 238696
Leading Industrial Machinery and Equipment Auctioneer, GoIndustry, Reverses into AIM Listed Grasshopper Investments Plc
December 13, 2005 Grasshopper Investments plc (‘Grasshopper’) has today agreed to acquire GoIndustry AG, a global leader in auctions and valuations of used industrial machinery and equipment, subject to the consent of shareholders. Grasshopper will issue up to 160,002,965 shares for GoIndustry valuing the Enlarged Group at circa £32.6m. The Enlarged Group will be renamed GoIndustry plc and the shares will commence trading on AIM on 5th January 2006 (under the AIM symbol GOI), following a meeting of shareholders that has been arranged for 4th January 2006. Cenkos Securities Limited is the broker and Grant Thornton Corporate Finance is the nominated adviser.
Formed in 1999, GoIndustry has grown rapidly both through acquisitions and organically. It now has offices in 15 countries, employs 246 staff, and has sold equipment into more than 60 countries so far in 2005. The used machinery and equipment market is highly fragmented and estimated to be worth more than $100bn per annum of which approximately 45 per cent. is GoIndustry’s core addressable market of ‘inside the factory’ equipment, such as machine tools, plastics, textiles and food processing equipment.
Revenues are generated either on an agency or principal basis. The seller pays GoIndustry a percentage of the gross sales value of the equipment and in addition an incremental fee or Buyer’s Premium is added to the price of each lot. Fees are charged separately for valuations. GoIndustry also buys equipment and re-sells it as principal or guarantees the seller a minimum sales realisation value. This involves additional risk but offers higher margins and the company believes that this part of the business can be expanded with the additional cash resources that will be available to it following its acquisition by Grasshopper.
GoIndustry is joining AIM in order to raise the profile of its business and improve brand recognition. It will also gain access to Grasshopper’s cash to help finance expansion. GoIndustry will use its shares to help finance organic growth and further acquisitions, which would expand the group into new markets and consolidate its position in existing core markets.
GoIndustry Chief Executive John Allbrook said: “Our scale and global presence puts us in an ideal position to take advantage of current market trends. Companies relocating their factories to lower cost countries and mergers and acquisitions activity creates demand for our valuation and auction services. Secured lending products require accurate valuations for insurance and risk mitigation. We have an experienced team, which can provide all the valuation and auction services required by our customers. We also have a very scalable business model with the infrastructure to cope with much higher sales volumes. We believe that by joining AIM we will gain access to London’s institutional investor base, which will help us accelerate our growth.”