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Somero Enterprises (SOM)

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Wednesday 16 January, 2019

Somero Enterprises

Acquisition of the business assets of Line Dragon

RNS Number : 1954N
Somero Enterprises Inc.
16 January 2019
 

16 January 2019

Somero Enterprises, Inc.

("Somero" or the "Company")

 

Acquisition of the business assets of Line Dragon, LLC

Somero® is pleased to announce the acquisition of the business assets of Line Dragon, LLC ("Line Dragon"), a Pennsylvania based provider of concrete placing and hose dragging equipment to the concrete industry. 

The acquisition offers a unique opportunity to add to Somero's broad portfolio of differentiated products. Line Dragon complements Somero's SP-16 Concrete Line Placing & Pulling system, with the combined offering introducing innovative features to customers and expanding Somero's customer relationships in this market segment. 

In the year ended 31 December 2018 Line Dragon, LLC generated revenues of approximately $2.0M.  The transaction is expected to have a slight positive impact on 2019 earnings.

The acquisition includes all the business assets of Line Dragon, LLC, including all patents associated with Line Dragon equipment in exchange for $2.0M in cash paid at closing along with on-going performance payments based on a percentage of future sales of concrete line pulling and placing equipment. The performance payments are not expected to be material to Somero.

Jack Cooney, President and CEO of Somero said:

"The opportunistic Line Dragon acquisition is a great fit for Somero to expand our product offering and further extend our customer reach.  Line Dragon has grown a great business and developed strong brand equity as a provider of concrete placing and hose dragging equipment to the concrete industry. We are excited to add Line Dragon to the Somero family of products and believe, in combination with Somero's impressive capabilities, we are positioned well for continued growth and innovation of this product line."

Daniel Stolzfus, Owner Line Dragon, LLC said:

"Decades of hands-on experience in the concrete pumping industry drove the development of Line Dragon equipment, and I am confident that the combination of our innovative technology with Somero's creates a strong offering to customers. Somero has the history, industry expertise and world-class capabilities to make the most of the significant opportunities in our market, continue to innovate and make customers' businesses better, safer and more profitable."

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 

Enquiries:

 

Somero Enterprises, Inc.                                                                              www.somero.com

Jack Cooney, CEO                                                                                            +1 239 210 6500

John Yuncza, CFO

Howard Hohmann, EVP Sales

 

finnCap Ltd (NOMAD and Broker)

Matt Goode (Corporate Finance)                                                              +44 (0)20 7220 0500

Carl Holmes (Corporate Finance)

Tim Redfern (Corporate Broking)

 

Alma PR (Financial PR Advisor)                                                               [email protected]

Rebecca Sanders-Hewett                                                                          +44 (0) 203 405 0205

Susie Hudson

Sam Modlin

 


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