RUBICON, the British engineering group, has bought the Galway based metal fabricator, Higgins Group, for an initial £25 million in cash and Rubicon shares. Higgins manufactures metal cabinets for telecommunications and computer equipment.
Mr Joe Higgins, the founder of the group and its major shareholder, will join the board of Rubicon for a fixed term of three years at an annual salary of £84,850. He also has the option to remain on as managing director of the Higgins group for five years. Mr Higgins, who is understood to be in his mid forties, was not available for comment last night.
The initial payment of £25 million will be made up of a cash payment of £20 million and £5 million worth of Rubicon shares. Further payments will be made over the next five years, depending on the company's performance and subject to a cap of £75 million.
The cap was set in order to comply with Stock Exchange regulations and future payments are likely to be substantially less, according to Mr Tim Wightman, the group chief executive of Rubicon.
Higgins Group was set up in 1978 and is based at the Ballybrit Industrial Estate in Galway. The company supplies metal cabinets to manufacturers of computer and telecommunications equipment and employs around 100" people, according to Mr Wightman. Most of its customers are based in Ireland.
The group has net assets of, £7.33 million and made an after tax profit of £3.3 million in the year to the end of December last. No turnover figure was given.
Rubicon is a light engineering company based at Stratford on Avon in England. Last year, it merged with the larger Calder Group and now has a turnover in, the region of £150 million sterling, according to Mr Wightman. It has operations throughout Britain and Europe.
Rub icon has no trading or historical links with Higgins Group band was introduced to the company through a third party, he said. Higgins Group will operate as an autonomous subsidiary within Rubicon's metal fabrication division.
The company would fit well, into Rubicon's strategy of being a global supplier to large manufactures in information technology related industries, he added.
