Bss Group Plc Recommended Cash And Shares -17-

5th Jul 2010 07:00

| | * | the number of issued BSS Shares on 2 July 2010, the | | | | last Business Day prior to the date of this | | | | announcement, being 124,364,501 BSS Shares; and | +-----+----+------------------------------------------------------+ | | | | +-----+----+------------------------------------------------------+ | | * | any further BSS Shares which may be issued on or | | | | after the date of this announcement on the exercise | | | | of options or vesting of awards under the BSS share | | | | option and share incentive schemes, which options or | | | | awards have been granted on or before the date of | | | | this announcement, amounting in aggregate to | | | | 3,580,421 BSS Shares. | +-----+----+------------------------------------------------------+ | | | +-----+-----------------------------------------------------------+ | 8. | The expected operational cost savings have been | | | calculated on the basis of the existing cost and | | | operating structures of the Travis Perkins Group and the | | | BSS Group respectively. These statements of estimated | | | cost savings and one-off costs for achieving them relate | | | to future actions and circumstances which, by their | | | nature, involve risks, uncertainties and other factors. | | | Because of this, the cost savings referred to may not be | | | achieved, or those achieved could be materially different | | | from those estimated. This statement is not intended to | | | be a profit forecast and should not be interpreted to | | | mean that the earnings per share in 2010, 2011 or in any | | | subsequent financial period, would necessarily match or | | | be greater than those for the relevant preceding | | | financial period. | +-----+-----------------------------------------------------------+ | | | +-----+-----------------------------------------------------------+ | 9. | The statement that the Acquisition is expected to deliver | | | materially enhanced earnings for Travis Perkins in 2011 | | | (the first full year following completion of the | | | Acquisition) relates to future actions and circumstances, | | | which, by their nature, involve risks, uncertainties and | | | other factors. This statement does not constitute a | | | profit forecast and should not be interpreted to mean | | | that earnings for that year or any subsequent financial | | | period would necessarily match or be greater than those | | | for any preceding financial period. Earnings in this | | | context represent net after tax earnings before the | | | amortisation of intangible assets and non-operating | | | items. | +-----+-----------------------------------------------------------+ | | | +-----+-----------------------------------------------------------+ | 10. | For the purposes of this announcement, net debt / cash | | | represents total debt, excluding finance leases, less | | | total cash balances (including cash in joint ventures). | +-----+-----------------------------------------------------------+ | | | +-----+-----------------------------------------------------------+ | 11. | Underlying earnings means before intangible amortisation, | | | goodwill impairment, restructuring costs and | | | non-operating items. | +-----+-----------------------------------------------------------+ | | | +-----+-----------------------------------------------------------+ | 12. | The offer multiple of 10.7 times BSS's adjusted 2010 | | | EBITDA of GBP61.9 million is calculated on the basis of: | +-----+-----------------------------------------------------------+ | | | | +-----+----+------------------------------------------------------+ | | * | the issued and to be issued share capital of BSS as | | | | referred to in paragraph 7 above; | +-----+----+------------------------------------------------------+ | | | | +-----+----+------------------------------------------------------+ | | * | the net debt of BSS of GBP85.3 million as at 31 | | | | March 2010; and | +-----+----+------------------------------------------------------+ | | | | +-----+----+------------------------------------------------------+ | | * | the pension deficit net of deferred tax of GBP18.8 | | | | million as at 31 March 2010. | +-----+----+------------------------------------------------------+ APPENDIX III DEFINITIONS In this announcement, the following definitions apply unless the context requires otherwise: +---------------------------+------+----------+----------+---------------------------------+ | "Acquisition" | the proposed acquisition by Travis Perkins of the entire | | | issued and to be issued ordinary share capital of BSS to | | | be implemented by means of the Scheme or, if Travis | | | Perkins so determines in its absolute discretion (subject | | | to the consent of the Panel) by means of an Offer | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "associated undertaking" | has the meaning given by paragraph 19 of Schedule 6 to the | | | Large and Medium-sized Companies and Groups (Accounts and | | | Reports) Regulations 2008 other than paragraph 19(1)(b) of | | | Schedule 6 to those Regulations which shall be excluded | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS" | The BSS Group plc, registered in England and Wales (no. | | | 60987) | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS Board" | the board of BSS Directors | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS Board | the form of recommendation of the BSS Board to the BSS | | Recommendation" | Shareholders contained in the Scheme Document, or as the | | | case may be, the Offer Document | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS Directors" | the directors of BSS | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS Final Dividend" | the final dividend of 6.09 pence per BSS Share as | | | announced by the BSS Directors in BSS's preliminary | | | results on 25 May 2010 and payable as at 30 July 2010 to | | | BSS Shareholders on the register of members on 2 July 2010 | +---------------------------+--------------------------------------------------------------+ | | | +---------------------------+--------------------------------------------------------------+ | "BSS General Meeting" | the general meeting of the BSS Shareholders (and any | | | adjournment thereof) convened for the purposes of | (MORE TO FOLLOW) Dow Jones Newswires July 05, 2010 02:00 ET (06:00 GMT)