xrf acquires belgium based socachim fine chemicals

Cant understand why the market didn't like this ann. Maybe not enough people know about XRF yet.

XRF acquires Belgium-based Socachim Fine Chemicals
Belgium base for European expansion
3 November 2006: XRF Scientific Limited (XRF) has acquired the business of Belgium
based Socachim Fine Chemicals, a worldwide specialist in the distribution of equipment
and chemicals for the analysis of substances including minerals, cement and ores.
While XRF listed on the ASX Tuesday, the intention to proceed with the acquisition of
Socachim was outlined in XRF’s August prospectus.
XRF issued 3 million ordinary shares for the acquisition at the IPO value of A$600,000.
This represents approximately four times EBIT and is a value accretive acquisition as well
as firming XRF’s European foothold.
Two of Socachim’s four vendors have agreed to stay with the business with new
employment contracts. All vendors have been allocated equal amounts of XRF scrip
escrowed for 12 months.
The XRF Belgian Co is being incorporated in Belgium and will be a new fully owned
subsidiary of XRF. XRF and the new combined Belgium entity XRFS Socachim Scientific SA
will operate side-by-side to increase the overall European market share of analytical
services and hardware products.
“Socachim is a highly specialised business that we fully understand. This acquisition will
contribute immediately to XRF’s profitability and growth potential,” said XRF CEO Peter
Higgins.
“Socachim is a solid platform to expand European sales of XRF services and hardware. We
have known this business and its people for many years and expect a very smooth
ownership transition.”
XRF Scientific manufactures chemicals and instruments for the resources and scientific
industries.
-ENDSInquiries:
Peter Higgins Rudi Michelson
Managing Director Monsoon Communications
0427 183 083 0411 402 737
BACKGROUND
XRFS manufactures and markets a fully integrated range of instruments,
equipment, chemicals and precious metal products to the resource sector and
analytical industries. The company offers a wide range of products including
laser plasma spectrometers, fusion machines, high quality chemical fluxes and
platinum, platinum/gold and other alloy laboratory ware.
XRFS products include Laser Induced Breakdown Spectrometry, used in the
analysis of minerals, chemicals, soils and industrial materials, customised fusion
machines used to prepare samples for analysis and analytical fluxes, which are
mainly used to fuse samples into glass discs for analysis. The company also
produces platinum and platinum/gold laboratory ware and specialty lab tools
and furnace and heating technologies, which have wide applications in the
analytical and general commercial market.
XFRS’ core business is conducted by six fully owned divisions based in Australia
– Victoria-based Laser Analysis Technologies Pty Ltd, Automated Fusion
Technology Pty Ltd and Analytical Platinum Supplies Pty Ltd and Western
Australia-based X-Ray Flux Pty Ltd, Precious Metals Engineering (WA) Pty Ltd
and Modutemp Pty Ltd.