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Announcement

ASSET: HBY: HBY Acquires TBS Group & Announces New CEO for RSG

23 Jun 2016 14:34NZX
Hellaby Holdings Limited - NZX / Media Release 23 June 2016

HELLABY TO ACQUIRE TBS GROUP FOR $45M AND ANNOUNCES NEW CEO FOR RESOURCE
SERVICES GROUP

Hellaby Holdings (NZX: HBY) has today announced that a conditional agreement
has been reached to acquire TBS Group Limited, a specialist industrial asset
maintenance provider, for an initial payment of $45 million (subject to net
asset adjustment), plus an earn out payment of up to $6 million dependent on
achievement of twelve month earnings targets.

The initial consideration comprises NZ$40.5 million in cash and $4.5 million
in Hellaby ordinary shares. Any earn out payment will be satisfied in a mix
of cash and through the issue of new Hellaby shares.

The business is currently generating annualised revenues of approximately $85
million and is expected to add about $8 million in annualised EBIT to the
Resource Services Group in FY17. Settlement is scheduled to occur on 1 July
2016.

TBS Group has a 45-year history of providing key maintenance services to a
wide range of New Zealand clients in the oil and gas, agricultural,
construction and power generator markets.

It is an attractive extension of the Resource Services Group and complements
Contract Resources'' international focus in the highly specialised and
technical industrial services including catalyst handling, mechanical
services and specialised cleaning for major heavy industrial customers in
four key regions around the world.

CEO of Hellaby Holdings, Alan Clarke, commented: "Hellaby''s Contract
Resources business is the cornerstone of our Resource Services Group, with
other acquisitions such as TBS Group expanding the service offer.  We see TBS
Group complementing our existing Contract Resources business and enhancing
our combined service offering, both in New Zealand and ultimately,
internationally. This expanded service offering will assist in dampening the
earnings volatility the Resource Services Group has experienced in recent
times.

"TBS has a long history of successful joint ventures and informal
partnerships with a variety of different organisations across New Zealand.
They hold preferred contractor status for a number of key clients, based on
the high quality workmanship delivered by their experienced and specialised
workforce. There are no plans to change either their leadership or operations
and we are delighted to be welcoming TBS to the Hellaby Group."

Ivor Ferguson Appointed as New CEO for Resource Services Group

Highly respected energy and resources executive, Ivor Ferguson, has been
appointed as CEO for the Resource Services Group and will commence his role
on 1 July 2016.

Ivor has over 30 years'' experience in the international oil and gas energy
sector and has worked or consulted for many of the world''s largest oil and
gas companies, including Shell, Woodside Energy and Global Energy Group.  He
has senior leadership experience in blue chip companies as well as in more
entrepreneurial environments. His most recent role was CEO of Clough Amec, an
Australian joint venture between two multi-billion dollar global companies to
deliver services to the oil and gas industry.

Ivor said: "I am delighted to be joining such a well established and
successful company. Due to the early vision, leadership and very hard work of
the founders, Contract Resources has grown over 27 years into an excellent
services company with an impressive portfolio of loyal and valued clients.

"Now under the corporate stewardship of Alan and the Hellaby Board, Contract
Resources is destined to enter a promising new phase in its life. The
opportunity to develop and deliver on the huge potential for this highly
regarded business in its next stage of growth represents an exciting
challenge for me, and one where I see lots of upside, locally and
internationally", said Ivor.

Alan Clarke said: "Ivor has a depth of industry experience and a track record
in leadership, cost efficiency, organisational growth, project delivery,
change management and delivering profitability in difficult environments. He
is ideally suited to grow value for our shareholders and lead our Resource
Services Group into an exciting future, as we look to build on our existing
high quality portfolio of project work, as well as develop new and more
stable revenue streams."

ENDS

For more information on TBS Group, please visit the company website
www.tbsgroup.co.nz

For further information please contact:

Alan Clarke
Managing Director & Chief Executive Officer
T +64 9 306 7406
M +64 21 368 818
E alan@hellabyholdings.co.nz

Richard Jolly
Chief Financial Officer
T +64 9 307 6844
M +64 27 497 6710
E richard@hellabyholdings.co.nz

www.hellabyholdings.co.nz

Hellaby at a glance

Hellaby Holdings (NZX:HBY) is a long term committed business owner with a
focus on businesses that provide innovative essential solutions and services
to our clients who operate in specialist markets.

Our goal is to be viewed as an attractive listed company, that is well
understood and that operates in markets where we can add value through
focused long term ownership of leading and respected business groups.

Hellaby''s core purpose is to generate long-term shareholder value by owning
and growing businesses in attractive and understood markets. We will achieve
this through a combination of performance improvement and organic growth in
our core business groups as well as through smart focused acquisitions.

Our investment portfolio employs 3,000 people across New Zealand, Australia,
Middle East and North America.

We have a decentralised business model, with Hellaby''s Board and executives
providing strategic oversight and support for each group''s talented and
experienced business and technical teams.
End CA:00284549 For:HBY    Type:ASSET      Time:2016-06-23 14:34:35
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