19th Oct 2005 07:01
Elementis PLC19 October 2005 PRESS INFORMATION 19 October 2005 ELEMENTIS PLC Sale of Specialty Rubber business Elementis plc (LSE:ELM), today announced that it has agreed to sell itsSpecialty Rubber business headquartered in Yateley, UK ("Linatex"), to privateequity funds managed by Navis Capital Partners ("Navis") for a net cashconsideration of approximately US$30.8 million (£17.6 million) on a cash free,debt free basis. Navis is an Asian-based investment company. Linatex is a leading international manufacturer of wet abrasion resistant rubberproducts and process equipment. In the year ended 31 December 2004, Linatex'soperating profit was £0.2 million on sales of £45.9 million with net assets of£17.1 million, excluding cash and debt. After taking account of transactioncosts and net asset levels at the time of the sale, Elementis expects to recorda one time book loss on sale of around £7.0 million. Net proceeds from the sale will be used to make an additional contribution tothe UK pension scheme of £7.0 million, with the balance going to reduce netborrowings. Completion is expected to take place before the end of 2005. Edward Bramson, Executive Chairman of Elementis, commented: "This completes thestrategic review of Linatex which was announced early in 2005. The reviewconcluded that the business was non-core and that a sale represented the bestvalue option going forward." - Ends - Enquiries: Elementis plc Tel: +44 (0)1784 227 000 Ed Bramson ChairmanBrian Taylorson Finance Director Financial Dynamics Tel: +44 (0) 207 831 3113 Andrew DowlerGreg Quine This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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