DIP Dipford Grp

RNS Number:5149W
Dipford Group PLC
06 January 2006



6th January 2006



DIPFORD GROUP plc



Dipford Group plc ("Dipford") acquires Bruce & Co Limited ("Bruce & Co")



Dipford, a consolidator in the business broking market, announces that on 5
January 2006, it entered into an agreement to acquire Bruce & Company Limited,
one of Scotland's leading business brokers.



The acquisition of Bruce & Co. will give Dipford comprehensive coverage
throughout Great Britain. Once fully absorbed, the acquisition is expected to be
a significant contributor to the Group's future profitability.



The consideration for the acquisition, which is primarily debt-funded, will be
satisfied as to #250,000 in Dipford shares (a total of 406,504 ordinary shares
issued at 61.5 pence per share), #1.5 million in cash plus an amount equal to
the net cash balance in the company. In addition, there will be a cash earn out
of up to #1.25 million, calculated over the four years following completion,
depending on the performance of Bruce & Co.  The total consideration payable
will be a maximum of #3.6 million. An application has been made for the vendor
consideration shares to be admitted to AIM and dealing is expected to commence
on 9 January 2006.



Bruce & Co. was founded in 1988 and is the leading Scottish licensed trade
business broker. The two principals, and all the staff, will remain and drive
the future expansion of the business. The existing strength in the hotel, pub
and retail markets will be broadened to include other Group specialisations such
as day nurseries and care homes, while providing the rest of the Group with
detailed knowledge and experience of the hotel and leisure markets.



For the financial year ended 30 September 2004 Bruce & Co generated a profit
before tax of #611,990 on a turnover of #955,495 and as at 30 September 2004 had
net assets of #997,066 of which #654,006 was cash.



Jonathan Custance Baker, Chairman, Dipford says:



"The acquisition of Bruce & Co. will complement our existing range of businesses
and expands our geographical coverage. It also adds to our management team two
very experienced and able individuals who will spearhead our major growth plans
for Scotland."



For further information please call:



Jonathan Custance Baker - Executive Chairman          Tel:    01392 256800

Barrie Newton - Rowan Dartington                      Tel:    01179 330011

Roland Cross - Broadgate                              Tel:    020 7770 0512






Note to editors:

Dipford Group plc was created four years ago as a consolidator in the small to
medium sized business broking market. It acquired Redwoods in 2002, Dowling Kerr
in 2003, and Kings Business Transfer in 2005. Prior to the acquisition of Bruce
& Co, the Group had approximately 2,000 businesses for sale.



Dipford is the second largest business broker in the UK and has 1,000+ buyers
registering with the Group every week.



Bruce and Co is one of the largest sellers of country hotels and pubs in
Scotland.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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