08 April 2010

 

 

Norman Hay plc

 

 

Norman Hay plc forms a global partnership with the Normet Group

 

Norman Hay plc ("Norman Hay" or "The Group"), the specialist chemicals and systems group, has sold 30% of the issued share capital of TAM International Limited, its construction chemicals division, to the Normet Group ("Normet"), a global manufacturer and distributor of equipment for mining and underground construction, for £2.4 million, of which £853,000 relates to outstanding loans to the business.

 

The consideration, which is payable in cash, will be used to repay the remaining loans with the balance being invested for the future expansion of the Group.

 

Normet has been granted a call option for two years from 31 May 2014 for the remaining TAM shares. The consideration for which is based on a multiple of six times profit of the business in the year immediately preceding the sale. Under the call option, the minimum due for the remainder of Norman Hay's equity in TAM is £5.1 million and the maximum is £14.25 million. There is no guarantee that Normet will choose to exercise this option.

 

The joint venture will bring together the construction chemical products of TAM with Normet's world leading range of equipment for concrete spraying, explosive charging and underground logistics for the tunneling and mining industry.

 

Normet's 23 global outlets will provide TAM international with significantly increased distribution capability.

 

Norman Hay acquired 75% of the issued share capital of TAM in December 2006. The consideration for the acquisition of the controlling interest was £1.7m in cash, which was funded from the existing cash resources of the Company.

 

For the year ending 31 December 2009, TAM's operations made a pre-tax loss of £357,000 as we continued to invest in the expansion of TAM internationally.

 

Vic Bellanti, Chief Executive of Norman Hay plc, commented:

 

"The business activities of TAM and Normet are extremely complementary. Whilst we made significant progress in developing TAM's business in 2009, the global reach and extensive sales and distribution network of Normet will enable us to further expand TAM's client base rapidly. We will also be able to offer customers a far more efficient package for their tunneling and mining requirements".

 

  

Peter Hay, Chairman of Norman Hay plc, concluded by saying:

 

"We believe that this collaboration will make TAM a truly global construction chemicals company and will be beneficial for TAM and Normet alike as well as Norman Hay's shareholders".

 

 

-   ENDS -

 

Enquiries to:

 

Vic Bellanti and Nick Ogden                                                           

Norman Hay plc                                              

Tel: +44 (0)24 7622 9373

 

David Haggie and Juliet Tilley

Haggie Financial

Tel: +44 (0)20 7417 8989

 

 

 

About Norman Hay plc

 

Norman Hay plc is a global chemicals, sealant, surface coatings and engineering specialist with over 60 years of trading history. It operates globally in five continents and is headquartered in Coventry, UK. The Group has four main subsidiaries: "Ultraseal" - automotive sealants; "Armourcote" - surface coatings; "TAM International" - construction chemicals; and "Norman Hay Engineering" - bespoke process plants. Norman Hay plc is listed on AIM under the ticker symbol HNN.

 

For more information see www.normanhay.com 

 

 

 The Normet Group

For over 40 years Normet has developed, manufactured and marketed equipment and vehicles for mining and underground construction. In addition the company provides a comprehensive range of Life Time Care services e.g. maintenance, service programs, spare parts and training for their equipment and associated processes.  Normet's head office is in Iisalmi, Finland, and manufacturing is located both in Iisalmi and Santiago de Chile. Sales, marketing and product offering development are headed up from Normet International Ltd in Switzerland. Normet employs over 450 business professionals in 23 locations worldwide. Turnover in 2009 totaled approximately EUR 92 million.

 

For more information see www.normet.fi

 

 

TAM International

Founded in 1982, TAM are leaders in specialist chemicals and systems for waterproofing, leak sealing, repair and protection for the civil construction, underground construction and general building industry. TAM has over 70 employees worldwide and is owned by Norman Hay plc in partnership with Martin Robbins, TAM International's CEO. TAM has manufacturing and sales operations in Australia, UK and Taiwan along with sales and marketing operations in Singapore, Hong Kong, Indonesia, Europe and the Middle East. Turnover in 2009 was approximately EUR 9 million.

 

For more information see www.taminternational.com