Johannesburg — ELECTRICAL and instrumentation company B&W has acquired earthing and lightning protection company Pontins for R19,2m.

The purchase is in line with its strategy of acquiring complementary niche businesses.

The AltX-listed company said yesterday it intended to grow the Pontins business by increasing capacity and cross-selling to the combined customer base.

B&W's revenue for the year to August rose 12%, to R502,8m from R450,3m, with operating profit steady at R75,6m.

The acquisition is expected to open up opportunities for the existing business as B&W and Pontins already work together. B&W's involvement is towards the end of a project, while Pontins gets involved in the early stages.

B&W said R12,9m of the purchase price would be settled from its cash resources, and the other R6,3m by issuing shares.

In terms of restraint of trade agreements, a further R1m was paid to each of the two shareholders of Pontins.

The deal is conditional on the Pontins empowerment trust being wound up.

According to the unaudited pro forma financial effects of the deal, B&W's earnings per share will rise 3% to 30,5c and headline earnings per share will rise 2,7% to 30,6c. Net asset value per share will increase 1,4% but tangible net asset value per share will drop 5,5% to 73,7c.

B&W INSTRUMENTATION

Full year 2009 2008

Revenue (Rm) 503450

Pretax (Rm) 82,91582,292

Net income (Rm)59,28457,836

Headline EPS (c) 29,7629,0

Dividend PS (c) 5-