GFG Greatfleet

RNS Number:7368D
Greatfleet PLC
12 September 2007

For immediate release

12 September 2007





                                 Greatfleet plc

                        ("Greatfleet" or the "Company")



                                  Acquisition



Greatfleet, the specialist recruitment business, is pleased to announce the
acquisition of the entire issued share capital of the following four companies;
Qualitas People Solutions (Ireland) Limited; Qualitas People Solutions (UK)
Limited; Alliance Recruitment (Ireland) Ltd and Qualitas HR Solutions (Ireland)
Ltd (together known as "Qualitas") for a total initial consideration of #3.4
million. In addition a further deferred consideration of up to #1.0 million
maybe payable in March 2009, dependent upon: i) Tony Cox and Colin Gerstein (the
"Vendors") remaining as employees of Greatfleet until the end of December 2008:
and ii) the enlarged Greatfleet group achieving its budget in 2008. The Board
anticipate that the acquisition will be earnings enhancing in the first full
financial year of ownership.



Under the terms of the acquisition agreement the initial consideration of #3.4
million will be satisfied through the payment of #0.6 million in cash and the
issue of 17,500,000 new ordinary shares of 2 pence each in Greatfleet (the "
Consideration Shares"). The cash element of the transaction will be funded
through a facility which Greatfleet has arranged with General Capital Group plc
("General Capital"). Greatfleet will borrow #650,000 from General Capital (the "
Loan"), which will attract an interest rate of 1.5% per month. In addition
Greatfleet will pay General Capital a 5% arrangement fee and a 5% exit fee (at
the time of repayment of the Loan). The Loan is repayable over 36 months. The
board of Greatfleet are comfortable that the Company will be able to repay the
Loan, the interest and the arrangement and exit fees by this date. In the event
that the company is unable to repay the loan, alternative funding will need to
be sought by the Company.



Qualitas specialises in the provision of recruitment consultancy services to the
professional services industry through Qualitas People Solutions in Dublin and
Edinburgh. They also provide HR consultancy services through Qualitas HR
Solutions in Dublin. Qualitas is based in Dublin and Edinburgh and currently has
approximately 32 employees. Qualitas was set up in late 2003 by the Vendors, who
will both join the Executive Management Team of Greatfleet.



For the six months ending 30th June 2007, the audited turnover of Qualitas
amounted to #1.4 million with audited profit before tax totalling #0.32 million.
At 31 December 2006 the audited net assets of Qualitas were #0.069 million.



Qualitas will complement the existing operations of Greatfleet in the financial
services, accountancy and legal sectors. In addition the acquisition will assist
the Group in developing new geographic locations as well as adding to
Greatfleet's presence in the IT contracting marketplace.



Application will be made to the London Stock Exchange plc for the Consideration
Shares to be admitted to trading on AIM, a market operated by the London Stock
Exchange plc ("AIM"). The Consideration Shares will, upon issue, rank pari
passu, with the Company's existing issued ordinary share capital and are subject
to certain lock-in restrictions which expire on 10th September 2008 and an
orderly market arrangement for 12 months thereafter. It is expected that
dealings in the Consideration Shares will commence on AIM on Tuesday 18th
September 2007.



Tony Cox, Director of Qualitas commented: "I am very proud of the business we
have created since 2003 and believe that the acquisition by Greatfleet plc is
the logical step in the development of the Qualitas brands. Colin Gerstein and I
look forward to working with Stuart Blake and the Greatfleet management team in
the coming years as we focus on becoming a leading player in professional
services recruitment across the UK and beyond"



Stuart Blake, Chief Executive Officer of Greatfleet, commented:



"Qualitas is a highly regarded company whose management will bring a vast amount
of experience to Greatfleet. The acquisition expands our regional presence and
we look forward to launching our legal and financial services brands in
Edinburgh and Dublin, both of which are thriving markets. We see this as an
important step in Greatfleet growing to become the number one legal recruitment
business in Europe. Our strategy is to grow the Company and consolidate it as a
leading player within its niche markets.



I would like to welcome Tony, Colin and all the Qualitas staff to Greatfleet and
I look forward to working with them"







For further information please contact:



Greatfleet plc
Stuart Blake, Chief Executive Officer          Tel: 0845 881 0700



Noble & Company Limited                        Tel: 0207 763 2200
Nick Naylor



Parkgreen Communications Limited               Tel: 020 7851 7480
Simon Robinson                                 Mob: 07887 985 671
Simon.robinson@parkgreenmedia.com
Ben Knowles                                    Mob: 07900 346 978
Ben.knowles@parkgreenmedia.com










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