Acquisition

RNS Number:0537F
Asfare Group plc
23 June 2006


Press Release                                               23 June 2006



                                Asfare Group plc


                                   ("Asfare")


                   Acquisition of the business and assets of
               Collins Youldon Limited & Ewart F Youldon Limited


                              ("Collins Youldon")



Asfare, a specialist supplier of products and services for the Emergency
Services and Homeland Security markets, today announces that it has completed
the acquisition of the Collins Youldon business and assets.  Collins Youldon
manufactures hose reels, cable drums and related products supplying both the
fire and the vehicle tanker industries. The total consideration is #912,000
payable in cash and it is being funded through a bank loan of #700,000 and cash
reserves.



Collins Youldon products are leaders in their UK and European markets and it
generates in excess of 40% of its revenues through exports predominantly to
Europe.



In the year ended 30th June 2005 Collins Youldon reported turnover of #2,752,000
with adjusted pre-tax profit of #320,000. In the Management Accounts for the 10
month period to the 30th April 2006 the turnover was #2,412,000 with an adjusted
pre-tax profit of #285,000.



Collins Youldon is based in Harlow, Essex and employs 28 people. The business
was formed in 1976 as an associate company of Ewart F. Youldon, a family run
engineering business founded in 1946. Since then Chris Youldon and his two
daughters have successfully managed the business and they will be retained in a
consultancy capacity for a short handover period. Tony O'Neill, CEO of Asfare,
will take immediate day to day management control of the business which will
become a division of AS Fire and Rescue Equipment Limited.



Asfare has acquired the inventory, fixed assets and goodwill of the business for
the consideration of #912,000. The consideration is split into two main
elements:



1) An initial payment in cash of #689,000 due on completion



2) A deferred payment in cash of #223,000 adjusted for movements in the
inventory and fixed assets since 1st January 2006. The adjusted amount will be
payable in two equal instalments:

     i)   The first payment will be paid 6 months from completion

     ii)  The second payment will be paid 12 months from completion



Tim Wightman, Chairman of Asfare, commented on the acquisition; "We are
delighted to be purchasing Collins Youldon.  It has excellent synergies with our
existing business and will be a natural partner for AS Fire and Rescue. The
quality products and customer relationships that Collins Youldon enjoys will
both consolidate our existing position in the UK markets and further our desire
to expand into Europe.



"This acquisition represents a further step in Asfare's strategy to develop our
business as a specialist supplier of products and services for both the
Emergency Services and Homeland Security markets".



                                    - Ends -



For further information, please contact:


Asfare Group plc                                                  www.asfare.com
Tony O'Neill, Chief Executive                          Tel: +44 (0) 2380 861 966

Tim O'Connor, Finance Director


Seymour Pierce
Mark Percy / John Depasquale                           Tel: +44 (0) 20 7107 8000


Abchurch Communications
Charles Jack                                           Tel: +44 (0) 20 7398 7700
charlie.jack@abchurch-group.com                           www.abchurch-group.com







                      This information is provided by RNS
            The company news service from the London Stock Exchange
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