The old Data Recording Instrument peripherals business is changing hands yet again, and we strike FKI Plc off the list of quoted UK companies we follow, and replace it with Wellman Plc. It is selling four of its divisions – DRI, Columbia, Transport Equipment and FKI Babcock Robey to Wellman for ?46m. The Columbia group development and manufactures specialist ribbons for security printers, bar coding and ticketing systems, the Transport Equipment Division does garage equipment, parking equipment and perimeter access systems, and FKI Babcock Robey does industrial boilers and pressure vessels, contracting and engineering projects. The businesses Wellman is acquiring are located at nine main sites throughout the UK and at three overseas locations and employ a total of 1,500 people. The DRI group is principally a maker and distributor of magnetic recording heads, high speed matrix printers and printer ribbons and the provision of own and third party maintenance support. In the year to March, it had total sales of ?29.3m. It will join the Transport and Technology Division of Wellman. Wellman will pay ?30m cash, ?10m of convertible redeemable 6% preference shares, ?6m of 8% unsecured loan stock. The price is based on an assumed net asset value of ?26.2m. The preference shares are convertible into Wellman ordinaries within three months after August 12 1995 at FKI’s option. The busineses made profits of ?1.9m on sales of ?91.8m in the year to March. Wellman will be raising ?32m by means of a placing and open offer at 36 pence per share, underwritten by Singer & Friedlander Limited. The stockbrokers to the placing and open offer are Peel, Hunt & Co Ltd.
