Low & Bonar announces the acquisition of the entire issued share capital of LCM Construction Products Ltd (trading as Adfil) for a consideration of up to £12.8 million in cash. Adfil is a specialist polypropylene fibre manufacturer whose principal activity is the production and supply of fibres for use as an additive to concrete in order to provide strength and enhanced resistance to surface cracking. Major projects where Adfil’s products have been used include the new Terminal 5 at Heathrow Airport and the Channel Tunnel Rail Link. In the year to 31 December 2003, Adfil reported sales of £9.6 million, profit before interest, tax and goodwill amortisation of £1.7 million and as at that date had net assets of £1.4 million. Profit before tax was £1.0 million. The acquisition will complement Low & Bonar’s existing speciality fibres activities and is expected to make a positive contribution to earnings from the first year. The sellers of Adfil are private equity house Lloyds TSB Development Capital (LDC) and the existing management team. The management team will remain with the business.

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