Umeco plc, Europe's leading provider of value-added distribution services to the aerospace and defence industries, today announces that it has entered into a conditional agreement to acquire the business and net assets of Richmond Aircraft Products ("Richmond"), a division of M.A. Hanna Company Inc., for US$37.5m (£23.5m) payable in cash on completion.

Richmond Aircraft Products, based in the USA, is a leading international distributor of vacuum bagging and structural foam products to the aerospace and defence industries. Many of Richmond's operations complement those of Aerovac Systems, a leading European supplier of vacuum bagging materials acquired by Umeco in March 1999. The acquisition will enable Umeco to provide its customers with a global distribution service for vacuum bagging products and will provide the combined business with an opportunity to gain additional market share on a global basis.

Highlights

>> For the year to 31 December 1999, Richmond had turnover of US$26.6m (£16.7m) (1998: US$24.7m (£15.5m)) and made an operating profit of US$4.8m (£3.0m) (1998: US$3.9m (£2.5m));

>> The acquisition, which is conditional on obtaining approval of shareholders and clearance from the US competition authorities, is expected to be earnings enhancing in the current year before the amortisation of goodwill;

>> Based in California, Richmond will provide UMECO with access to a number of OEM customers and Tier One suppliers in the North American market;

>> Following the acquisition, both Aerovac Systems and Richmond will be able to offer a broader product range sourced from cost-effective suppliers;

>> The acquisition will give Umeco a significant presence in the United States, the world`s principal aerospace and defence market and will enable Umeco to provide its customers with a global distribution service for vacuum bagging products.

Clive Snowdon, Chief Executive of Umeco, said:

"The acquisition of Richmond is a significant step towards our strategy of becoming the leading global provider of value-added distribution services to the aerospace and defence industries. It gives us a strong foothold in one of our three key business activities in the hugely important US market."

US dollar amounts are translated at an exchange rate of £=US$1.5953 being the closing mid-market rate on 31 March 2000. At 18 July 2000, being the last practicable date prior to this announcement, the mid-market exchange rate was £=US$1.4955.