Tomkins Acquires Hart & Cooley

31 December 1999

Tomkins Acquires Hart & Cooley

    LONDON--Dec. 30, 1999--Tomkins PLC , the international manufacturing company, is pleased to announced that it has acquired the assets of Hart & Cooley, a private US Company, for approximately $320 million ((pound)199 million) in cash. The transaction has already received appropriate US regulatory approval.
    Hart & Cooley is the leading US producer of grilles, registers and diffusers used in residential and light commercial applications, and through Penn Ventilation, it also manufactures fans and blowers for commercial and industrial applications. The business complements Air System Components, Lau and Ruskin, Tomkins existing North American air handling operations, which already occupy leading positions in the commercial and industrial markets.
    The operations purchased have 2, 700 employees, with nine manufacturing facilities in the US and one in Canada. Hart & Cooley's sales for the year to December 31, 1999 are estimated at $330 million ((pound)205 million).
    Under US Generally Accepted Accounting Principles, Hart & Cooley's estimated earned operating income for the year to December 31, 1999 will be $34.6 million ((pound)21.5 million), after adjusting for non-trading and one-off items and before goodwill amortization. As at end October 1999 net tangible assets to be acquired were approximately $76 million ((pound)47.2 million).
    Greg Hutchings, Tomkins' Executive Chairman, said: "Tomkins strategy is predicated on building leading positions in selected markets in which we can generate growth. We have identified air distribution as offering a major national and international expansion opportunity.
    Hart & Cooley is an excellent acquisition for Tomkins. We already have a well-established presence in air distribution in the US and the addition of Hart & Cooley demonstrates our commitment to that market. The purchase creates a focused air distribution business with annual sales in excess of $684 million ((pound)425 million) and enables us to offer customers a much broader range of products, packages and systems coupled with enhanced service levels. It also creates a sound base for overseas expansion."
    Tomkins comprises a broad range of low-risk technology manufacturing companies. Tomkins' US interests include The Gates Rubber Company, Denver, CO, the world's leading manufacturer of power transmission belts and a major producer of hose and connector products. Other interests include, Murray, Inc., Brentwood, TN, one of the leading US producers of power lawnmowers, snow blowers and bicycles; Red Wing Corporation, Fredonia, NY, the largest US manufacturer of private label grocery products; and Tomkins Industries, Dayton, OH, a leading manufacturer of components for residential, commercial, and industrial buildings, materials handling and the transportation industry.
    Tomkins shares trade in the US in ADR form (each equal to four ordinary shares) on the New York Stock Exchange under the symbol TKS; its ordinary shares are listed on the London Stock Exchange.