Law firm Gordons advises Brulines on £3.8m acqusition of Tadcaster-based closest rival

Monday 21st January 2008

Stockton-based Brulines – the leading provider of draught alcoholic drinks volume, quality and profit protection systems for the UK licensed on-trade – has acquired its closest rival for £3.8m.

Nucleus Data is located in Tadcaster and provides beer dispense monitoring equipment and data analysis services for over 27 independent pub companies. Its acquisition means that Brulines now provides monitoring services to 21,500 UK pubs, clubs and bars.

The deal was negotiated on behalf of Brulines by corporate partner Peter Barton and associate solicitor Richard Hunt of Leeds and Bradford law firm Gordons. The value of the deal could rise to £4.5m depending upon future performance.

James Dickson, chief executive of Brulines, said: “Despite being very complex, the acquisition process ran smoothly thanks to the practical and commercially astute advice provided by Gordons. This deal provides us with the strongest possible start to 2008 as it enhances product development, further strengthens our senior team and provides a solid commercial platform from which to accelerate our entry into new markets.”

The deal represents Brulines’ second acquisition since it floated on AIM in October 2006. Last year Brulines took a controlling stake in Coin Metrics in a deal worth £685,000. Milton Keynes-based Coin Metrics developed a wireless data system used by companies within the amusement and gaming industries to monitor the financial performance of their sites and assets in real time.

Gordons’ Peter Barton commented: “This transaction was particularly complicated as it was conditional upon the Office of Fair Trading (OFT) not referring the acquisition to the Competition Commission.

“We had to prepare an application for clearance to be submitted to the OFT which we are delighted was accepted following a great deal of correspondence. Now that the deal has gone through we are certain that Brulines will continue to enjoy a sustained period of growth as it implements its controlled expansion strategy.”