Turin, Sep 18, 2006 AEST (ABN Newswire) - SAI Global Limited (ASX: SAI) has completed the acquisition of Certificazioni Torinesi S.R.L. ("CerTo"), a leading Italian assurance provider. CerTo represents an important strategic acquisition for the continued growth and expansion of SAI's assurance business.
The Acquisition:
- adds blue chip clients to SAI Global's assurance business including Ferrari, Maserati and Bosch;
- provides a platform for expansion into continental Europe; and
- extends SAI Global's position as a global assurance provider.
In paying a multiple of 7 times EBIT, Mr Ross Wraight, Chief Executive Officer of SAI Global, said: "The acquisition really puts SAI in pole position to drive its business improvement solutions across Europe."
"CerTo enhances SAI's current offering in Europe and continues to deliver on its strategic intent to build a leading global scale business in the international assurance market. CerTo dominates Italy's automotive certification industry and its services align with SAI's existing management systems and product certification offering."
"Importantly, the Acquisition provides scale to SAI Global's core assurance business in Europe and brings a blue chip client list," said Mr Wraight.
Overview of CerTo
Headquartered in Turin (Italy), CERTO was founded in 1993 as a landmark organization for Italian Automotive Industries. The founding partners include: Unione Industriale di Torino (Turin Industrial Association), ANFIA (National Association of Automotive Industries, Italian IATF Oversight Office), AMMA (Metallurgic & Mechanical Industry Association), AICQ (Italian Association for Quality Culture), member of EOQ (European Organization for Quality) and CUNA (Technical Commission for Automotive Standardization).
CerTo has 25 employees with offices in Turin, Naples, Tunisia and Poland. Its clients include Ferrari, Maserati, Brembo, Dayco and Bosch. The existing key management of CerTo will remain with the business under new three year contracts.
CerTo's core products include ISO9001, ISO14001, UNI9100, TS16949, Environment Management and Audit Scheme (EMAS), Emission Trading Scheme, OHSAS18001 and SA8000. CerTo also conducts in-house training and performs asset management audits for large organisations. CerTo is accredited by the Italian accreditation body Sincert and the International Automotive Taskforce (IATF).
"CerTo is proud to become part of the SAI Global family" said Domenico Gai, CEO of CerTo: "It's a great opportunity to improve our leadership, setting the conditions to develop new synergies allowing us to upgrade the services offered to our customers, to develop new competence and to strengthen and extend our image and presence worldwide."
CerTo is forecast to generate approximately 5 million euros in revenues over the next twelve months and an EBIT of approximately 600 thousand euros. SAI Global will recognise nine and half months' of these results in its FY07 accounts, less charges for the amortization of any identifiable intangible assets.
Acquisition Funding
The acquisition was funded out of existing cash reserves and is expected to be EPS accretive both on a cash earnings and reported net profit after tax basis in FY2007.
Contact
Investor Relations Inquiries
Tom Godfrey - SAI Global
+61 2 8206 6863 - +61 414 191 034
tom.godfrey@sai-global.com
| ||
|
