Hat Pin to acquire Stolkin & Partners for 1.18m

Hat Pin, the executive search and recruitment group and owner of market leading brands Kendall Tarrant Worldwide and Saxton Bampfylde Hever, is pleased to announce the acquisition of Stolkin & Partners, a leading recruitment consultancy specialising in the advertising and communications industry.

From a maximum consideration of 1.18 million for 100% of the issued share capital of Stolkin & Partners Limited, Hat Pin is paying 180,000 in equity immediately (by the issue of 251,749 ordinary shares at an issue price of 71.5p each) and the remaining 1.0 million will be paid in equal cash instalments, quarterly in arrears over three years, subject to certain revenue targets being met. For the 12 month period to 31 January 2006, Stolkin & Partners, with net assets of 220,000*, recorded a turnover of 1.04 million* and profit before tax of 168,000*.

Highlights of the transaction, which will incorporate Stolkin & Partners with Kendall Tarrant in the UK, are that it:

- is earnings enhancing on a pre-goodwill basis;
- augments Kendall Tarrantís pre-eminent global position in the advertising, marketing & communications sector; and
- provides potential cost-saving synergies from the combined businesses.

The acquisition is in line with Hat Pinís stated strategy of complementing the Groupís organic growth and underlines the companyís position as an AIM-listed consolidator within the recruitment industry. On 28 November 2005, Hat Pin announced the acquisition of 70% of the issued share capital of Saxton Bampfylde Hever Limited, one of the UK’s most respected executive search companies for a total consideration of 4.91 million.

Commenting on the acquisition, Angela Campbell-No, Chief Executive of Hat Pin plc, said: ìGary has built a successful business as a key competitor to Kendall Tarrant over the past 4 years and we are very pleased to welcome him and his strong, ambitious and well respected team to Hat Pin. The acquisition reinforces Kendall Tarrantís position in its niche market and is an important part of its succession planning strategy in the UK market in particular.î

Gary Stolkin, founder and managing partner of Stolkin & Partners, added: ìThis is a very interesting opportunity for all of us and I am excited by the prospects for the combined Kendall Tarrant business going forward.î

* Figures based on unaudited management accounts for the 12 month period ended 31 January 2006