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Trifast Buys German Industrial Distributor Kuhlmann For EUR 8.5 Mln; Stock Up

Shares of Trifast plc (TRI.L) were gaining around 3 percent in London trading after the manufacturer of industrial fastenings announced Thursday that it is extending its European presence through the acquisition of industrial distributor Kuhlmann Befestigungselemente GmbH & Co. KG Germany. The company expects the acquisition to be earnings enhancing in the first full year of ownership.

Under the terms of the acquisition, Trifast has acquired Kuhlmann for a total consideration of 8.50 million euros or 6.16 million pounds. The initial amount of 6.76 million euros was paid on completion in cash and 0.04 million euros was satisfied by the allotment of 29,350 ordinary shares in the Company.

Consideration of 1.70 million euros will be deferred for 12 months and is to serve as a retention against which any potential warranty and indemnity claims will be offset. The cash consideration will be met from the Company's existing bank facilities.

Trifast said it will be investing into Kuhlmann to further develop the opportunities in the German market and

Kuhlmann, which employs 18 staff, is a distributor of industrial fastenings within the domestic German market. For the year 2014, Kuhlmann reported revenue of 6.70 million euros and profit before tax of 1.74 million euros.

Kuhlmann's management team and previous owners, Frank Niggebru¨gge, Eric Hu¨tter and Peter Henning will continue to run the business with the support of the operational management team and staff who will remain within the business.

In London, Trifast shares were trading at 112 pence, up 3.23 percent.

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