CSG Agrees Merger With Carlisle Group

Corporate Services Group (CSG) , owners of brand such as Austin Benn, Blue Arrow and ABC Contract Services, has agreed a merger with Carlisle Group via a newly incorporated holding company, Impellam Group.

It is proposed that Impellam will acquire the entire issued and to be issued ordinary share capital of CSG and the entire issued and to be issued share capital of Carlisle.
In addition, it is intended that the Enlarged Impellam Share Capital will be admitted to trading on AIM.

Carlisle's shareholders (except for US shareholders) will get 34 of its subsidiary Shellproof shares for every 100 shares in the company they hold as dividend.

CSG said its shareholders will receive one Impellam share for every 50.4 of its shares, after adjusting for the conditional dividend payable to Carlisle shareholders.

This values each CSG share at 2.15 pence and the whole company at about GBP23.1m.

CSG directors consider the proposed merger will create a diversified business operating across a wide range of labour related markets, as well as in outsourced support services, with total combined revenues approaching £1 billion in 2007.

Impellam will hold an increased number of brands operating across a broad range of staffing sectors as well as in outsourced support services markets.

"Commercially, it will create a diversified business with total revenues approaching £1billion, with an increased number of brands operating across a range of staffing sectors as well as in outsourced support services markets," CSG chief executive Desmond Doyle said.