ACQUISITION OF ROCKLABS
12:00AM, 26 May 2008 | TAKEOVER
The Directors of Scott Technology Limited are pleased to announce that they
have completed satisfactory due diligence for the acquisition of the business
of Auckland based manufacturer, Rocklabs Limited. The remaining outstanding
conditions of sale are expected to be satisfied during the month of June.
Rocklabs are manufacturers of mechanised and automated sample preparation
equipment and suppliers of gold reference materials to the mining industry.
Manufactured products include rock crushers, ring mills, sample dividers and
integrated systems. Rocklabs are based in Onehunga, Auckland and employ 35
staff, plus it has a network of nearly 30 sales agents worldwide. Rocklabs
exports virtually all of its production and has customers in 98 countries.
Both Scott Technology and Rocklabs have a strong focus on product quality
which is one of the factors that attracted Scott Technology to Rocklabs.
While Rocklabs supply the mining industry which has not traditionally been
the domain of Scott Technology, both companies share a common core business
of engineering and automation.
Part of Rocklabs' business strategy is to move towards greater automation of
their products and systems. This is an area in which Scott Technology can
provide enhanced design and technical expertise.
The current owner of Rocklabs, Dr Ian Devereux, will remain with Rocklabs in
a management and technical role while Scott Technology intend operating
Rocklabs as a standalone subsidiary with few changes to its current operating
The consideration for the purchase will be a mixture of cash and shares in
Scott Technology and the transaction will be earnings positive for the Scott
Please contact Stuart McLauchlan or Chris Hopkins for further information.
Stuart McLauchlan Chris Hopkins
Chairman Managing Director
(03) 477 8192 021 815 975