Cape announces the acquisition of TRL and KTL

Cape Engineering UK Limited (“Cape”) has announced today that it has acquired the business and fixed assets of two UKAS accredited test laboratories: TRL Compliance Services Limited (“TRL”) and Laboratory Accreditation Services Limited (which trades as “KTL”).

TRL carries out EMC, radio, safety and calibration testing services, principally for international defence and aerospace groups.

KTL carries out telecoms, EMC and safety testing services, enabling telecoms equipment manufacturers to gain effective access to global markets for their products. KTL also works with many of the world’s largest telecoms operators to ensure compatibility of equipment with operators’ networks and is a recognised world leader in broadband technology testing.

TRL and KTL had combined revenues of £4.4 million for the year ended 31 March 2004.

The acquisition of TRL and KTL by Cape signals the formation of the UK’s leading provider of environmental, EMC, safety and telecoms testing services, confirming the enlarged Cape Group as market leader in its core test sectors.

The combination of Cape, TRL and KTL - each recognised as leading test providers in their own field - now creates a world class specialist testing services group designed to fulfil the testing requirements of its large blue chip client base within the defence, aerospace, commercial engineering and telecoms sectors. In recent years, consolidation within these sectors has fuelled a trend towards the outsourcing of testing services. Cape has successfully positioned itself to meet this demand by developing outsourced testing services for clients including Rolls-Royce and Cobham. The acquisition of TRL and KTL now significantly strengthens Cape’s position as a leading provider of specialist testing services which should assist Cape win further outsourcing contracts.

The combined Cape Group will operate from approximately 130,000 sq ft of specialist UK testing facilities with some 130 skilled employees. In addition, the deal aids Cape’s international growth ambitions, adding KTL’s telecoms interoperability testing business in the USA to Cape’s recent joint venture in India to provide competitive FEA consultancy services to the UK market.

Commenting on the acquisitions, Steve Roberts, Managing Director of Cape, said:

‘In bringing together Cape, TRL and KTL, we have combined three of the most respected names in UK testing to provide our 1500 customers with a single point of access to a broad range of specialist testing services and leading edge technological capabilities. The scale, collective expertise and geographic spread of our business places the enlarged Cape Group in a strong position to meet our client’s growing demands for value, technical expertise and first rate customer service”

Paul Harris, Managing Director of TRL, said:

“We have known Cape for many years and have always respected their technical capabilities and ability to innovate. I am delighted that TRL – which Mark Heaven and I have built up over the last 17 years – is joining forces with Cape. I am convinced that we will now be able to offer our clients an even higher level and breadth of specialist testing services.”

Nick Cleary, Operations Manager of KTL, said:

“We have already been collaborating with Cape in the US on telecoms testing and are very pleased to become part of the Cape Group. The opportunities for telecoms testing are large and fast growing - and we believe that Cape will bring us additional resources and expertise to help us maximise the opportunities in this increasingly international market.”