WKT Walker (Thomas)

RNS Number:1220W
Walker (Thomas) PLC
22 December 2005


Acquisition of the Business and Assets of Leslie Group Limited

Thomas Walker PLC ("Thomas Walker" or the "Company") announces that, on 22
December 2005, it acquired the business and certain assets (comprising the plant
and equipment, stock and goodwill) of Leslie Group Limited ("Leslie"). Leslie
manufactures stamped brass and aluminium components, which are sold
predominantly in the UK into specialist markets including engineering,
architectural and electrical components and niche sectors such as gas fittings.

Since the acquisition in June 2004 of Guests Brass Stamping Company Limited
("Guests"), the Board of Thomas Walker (the "Board") has been seeking to
identify a further acquisition in stamping so as to maximize the benefits of the
first investment through synergy. The Board believes that Leslie's activities
will be complementary to those of Guests and that the acquisition of Leslie is
an appropriate next step for the Group.

Leslie is a long established Birmingham business, which has grown through the
acquisition of smaller competitors in Birmingham and the Black Country. Leslie
collaborates closely with its customers in the development of designs and in the
manufacture of tooling and dies. This forms the basis of long term partnerships.

As a transitional arrangement, the business will continue to operate from its
current premises pending integration into the Group's existing operations.
Thomas Walker has agreed to rent these premises for a maximum of 18 months at a
rental of #66,000 per annum. The majority of employees will be transferring with
the business and will join Thomas Walker.

The consideration for the acquisition is #1,300,000 in cash, which will be
funded from new bank facilities and from the Company's existing cash resources.
The consideration is subject to adjustment depending on the outcome of a
physical stocktaking which is currently being evaluated.

In the year ended 31 December 2004, Leslie had an audited turnover of #3,163,000
and a loss before tax of #59,000. Turnover for the year ending 31 December 2005
is expected to be somewhat lower due to a modest market downturn. The Board is
confident that Thomas Walker has a number of initiatives that can help redress
the situation.

The fixed assets to be acquired by Thomas Walker PLC have been assessed by
independent professional advisers and the value of stock is being agreed by
joint assessment. The historic book values of the fixed assets and stock being
acquired are #957,000 and #271,000 respectively. The assets to be acquired are
being transferred free of all charges and encumbrances, and all other assets and
liabilities of the business will remain with Leslie.

Given the inevitable period of re-organization within the Thomas Walker Group,
the Board expects the acquisition to be earnings enhancing from the first
quarter of 2007. This statement should not be interpreted to mean that Thomas
Walker's future earnings will necessarily be greater than its historic published
earnings.

Commenting on the acquisition, Bryan Knight, Chairman of Thomas Walker, said:
"The acquisition of the Leslie business and assets is a second step in a
hitherto successful diversification into brass stamping and is a further stage
towards Thomas Walker's long stated aim of reducing its reliance on the
declining textile market. It is also progress toward developing more sustainable
businesses.

The technology is wholly compatible with Guests' and Thomas Walker's engineering
expertise and we look forward to creating enhancements in throughput and
efficiency through amalgamation, rationalisation and synergy."

Enquiries to:
Bryan Knight, Chairman Tel: 0121 486 4100
Edward Cook, Managing Director Tel: 0121 486 4100



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