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Acquisition from AEA Technology August 2006
   

VISION CAPITAL ACQUIRES PORTFOLIO OF COMPANIES FROM AEA TECHNOLOGY PLC FOR £76.4 million

- First corporate portfolio acquisition by VisionCapital -

Vision Capital today announced that it has exchanged contracts for the acquisition of a portfolio of four businesses from AEA Technology plc (“AEA”) for a total consideration of up to £76.4 million.  Completion of the transaction is subject to clearance from competition authorities and relevant consents.

This is the first corporate portfolio acquisition by Vision Capital and marks its entry into the nuclear and rail consultancy sectors, both of which offer significant growth prospects.

The acquisition comprises Rail (UK), a software consultancy business serving the rail sector,Waste Management Technology Ltd (UK), ESI Inc (US) and Kinectrics (Canada) -all providing consultancy and services to the nuclear industry.

Formerly part ofthe UK Atomic Energy Authority (UKAEA), AEA was privatised by flotation on the London Stock Exchange in 1996 and with this transaction achieves its strategic transformation into a focused environmental consultancy business.

The transaction is the first investment for Vision Capital Partners VI LP, the firm’s recently raised fund. In May, Vision Capital announced a substantial increase in its investment capacity from its leading international investor base, building on its leadership in the European market for direct buyout portfolio transactions.

Julian Mash, Chief Executive of Vision Capital, said:

“Vision Capital has made its reputation executing direct portfolio transactions in the private equity sector.  We’re delighted that the same techniques can be successfully applied to provide strategic benefits for quoted companies as well.  We have acquired a strong portfolio of businesses from AEA and we look forward to working with the individual management teams to take them on to the next level of growth and development.”

About the portfolio of businesses

The Rail Business and the Rail Companies

These businesses provide products and services for the operation, management and the maintenance of UK and international railway infrastructures and networks. The UK business is mainly based at Derby and London, and there are subsidiaries in France, the Netherlands and Spain. The core skills of the UK business are to provide advice to companies involved in the UK rail industry and the provision of a broad range of software, hardware and consultancy to improve decision making across the railway infrastructure and control systems.

WMT

WMT provides services to nuclear and non-nuclear customers for the packaging and management of radioactive wastes and is based at Winfrith, Dorset. It aims to provide innovative, economically viable and environmentally acceptable solutions based on a skilled and experienced workforce and specialist plant and facilities. The business was operated as a division of AEA until March 2006 when the business, assets and staff were transferred into WMT, a wholly-owned subsidiary of AEA, with a view to its subsequent sale.

ESI

ESI, based in Pittsburgh, Pennsylvania, USA, provides specialist technical and engineering services to clients in the energy, environmental and homeland security markets. Its customers include the United States Government, public utilities and a range of public and private sector organisations.

Kinectrics

Kinectrics, based in Toronto, Ontario, Canada, provides life cycle management services to the energy industry, principally in the fields of nuclear power, electricity transmission and distribution and environment. It was acquired by AEA in 2002 from Ontario Power and now operates as a successful services company, with three main divisions focused on key market sectors: generation plant, transmission and distribution, and environment and nuclear services.

Vision Capital is a limited liability partnership | Registered in England number: OC336240 | Authorised and regulated by the Financial Conduct Authority