Persona Group Plc, Chessington, Surrey-based provider of networking products, training and computer consultancy services, is to aquire Top Log International SA. Top Log was born out of a management buy-out of Metrologie International SA in 1992. The Paris distributor of Unix, network and communications products is being taken out for ú19.9m and the purchase will effectively double the size of Persona in terms of turnover and profit. The surprise move comes only months after Persona chief executive Wayne Channon stated in the interim report that possible aquisitions within the training field were being explored but buying another distributor was not on the agenda (CI No, 2,733). Persona is making a 17-for-20 rights issue at 225 pence a share to raise ú21.1m net to fund the purchase, ú13.6m of which will be paid in cash. The remaining ú6.3m will come from the issue of 2.5m shares to Top Log at 253 pence per share, an 18 pence discount on yesterday’s share price. At the companies’ first meeting in September it appears to have been a classic case of love at first sight. Serge Van Gorkum, managing director of Top Log spoke yesterday of his excitement for the iminent marriage, and Channon appeared only too happy to re-enforce the view of happy families and smiling faces all round.
Perfect opportunity
He said Persona had experienced difficulties in its attempts to expand the training division and although there is still substantial room for improvement, no advances have been made so far. He felt Top Log provided the perfect oportunity to expand the company’s operations onto the continent, closing the gap on its main rival, Azlan Group Plc. Serge Van Gorkum and Minh Tran Chau will join Persona’s board as managing director of continental Europe and group operations director. Top Log currently has offices in France, UK, Germany, Belgium, Spain and Morocco, and with all except Germany running at a profit, Channon believes the only way is up. By transferring management skills and experience gained by both companies he hopes to improve profit margins. Both companies reported profits of ú2.7m to September 1995, but Top Log’s sales were 20% above those at Persona. Minh Tran Chau explained the disapointing figures as being the result of costs related to operating in five countries in Europe. The overlap of both products and services is expected to be minimal, with the emphasis resting on complementary goods and customers in an already established European market. Persona said the acquisition will not result in job losses for either company. Additional acquisitions are under discussion but Channon refused to say more. further. Persona is forecasting pre-tax profits for the 1995 year of not less than ú2.7m, 23% up on last year, and a final dividend of 3.36 pence a share is proposed.
