4th Jul 2005 11:39
BBA Group PLC04 July 2005 BBA GROUP PLC4th July 2005 BBA ANNOUNCES DISPOSAL OF MINORITY INTEREST IN FINOTECH GMBH AND THE ACQUISITION OF INTERNATIONAL GOVERNOR SERVICES INC BBA Group Plc today announces the disposal of its 40% minority interest inFinotech Gmbh for $82 million (£46 million) and the acquisition of InternationalGovernor Services Inc for an initial payment of $18 million (£10 million). Finotech Gmbh: BBA Group announces today that on the 30th June 2005 it disposed of its 40%share in Finotech Gmbh for $82 million to its joint venture partner, ClopayPlastics Products Company a subsidiary of The Griffon Corporation. Finotech, established in 1996, is a leading producer of sophisticated films,laminates and printing solutions primarily for the hygiene industry. It has beena highly successful joint venture closely connected to BBA's non-wovensbusiness, but as the market has changed Finotech's involvement in non-wovens hasbeen significantly reduced. BBA's share of Finotech's pre-tax profits for the six months to 30th June 2005will be approximately £2 million. The profit on disposal of its 40% share in thejoint venture will amount to approximately £23 million. International Governor Services: BBA today also announces the acquisition of International Governor Services Inc(IGS) for an initial payment of $18 million with further payments of up to $10million subject to business performance over a 3 year period. IGS, based inBroomfield, Colorado, specialises in the overhaul and repair of small turbineengine controls including fuel controls and governors used on a wide range ofpopular business jet and turboprop engines. It is an approved vendor for Pratt &Whitney and Raytheon. In the year ended 31st December 2004 IGS recorded sales ofcirca. $10 million and is expected to return above the group's pre-tax cost ofcapital (circa. 12%) in the first full year of ownership. Commenting on the announcement Roy McGlone, Chief Executive of the BBA Group,said: "Finotech has been a very successful investment for BBA but we felt that as themarkets changed and Finotech's involvement with non-wovens reduced, it was theright time to dispose of our interest in the business and to redeploy the fundselsewhere. We are delighted Clopay, our joint venture partner in Finotech, hasacquired our shares and we wish them every success in the future. We willcontinue to work with Clopay in a number of other market areas. "The acquisition of IGS complements our existing parts and engine repairbusinesses expanding our capability to provide more services to our customers.This is consistent with our stated strategy of expanding our component, repairand overhaul services and we continue to look for other opportunities to investin this area. ENQUIRES:Brunswick Group LLPLucie Anne Brailsford 020 7404 5959Jemma Hill This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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