4th Jan 2005 14:00
Marshalls PLC04 January 2005 4 January 2005 MARSHALLS PLC SALE OF CLAY PRODUCTS DIVISION FOR £65 MILLION Marshalls plc ("Marshalls"), the specialist Landscape and Natural Stone ProductsGroup, is pleased to announce that, today, it has completed the unconditionalsale of the entire issued share capital of Marshalls Clay Products Limited (the"Clay Products Division") to Hanson PLC, for a cash consideration of £65 millionincluding the repayment of all intergroup indebtedness. The Clay Products Division manufactures and supplies a range of clay bricks andpavers from four facilities (three in Yorkshire and one in Lancashire) todomestic, commercial and public sector users based predominantly in the UK. For the year ended 31 December 2003, the Clay Products Division generated EBITAof £4.2 million, on turnover of £32.1 million. As at 31 December 2003, the ClayProducts Division had net operating assets, before intergoup indebtedness,of £37.1 million. In the year ended 31 December 2004, the Clay ProductsDivision achieved sales of £34 million. The proceeds from the sale will, initially, be used to reduce Group borrowings.The Group will, during 2005, review the acquisition and investment opportunitiesthat are available. In the absence of value adding opportunities the Group willconsider returning some or all of the proceeds to shareholders. Commenting on the sale, Graham Holden, Chief Executive, said: "Marshalls have improved the operating performance and reduced the capitalemployed in the Clay Products Division over the past two years. However, thebusiness is still only the fifth largest brick company in the UK with littleprospect of improving on this position. Having received a good offer we considerit is in the best interests of our shareholders to sell the business at thistime." Marshalls is today issuing a trading update for the year ended 31 December 2004. Enquiries: Graham Holden Chief Executive Marshalls plc 01484 438900Ian Burrell Finance Director Marshalls plc 01484 438900 James Fenwick Rothschild 0113 200 1900 Jon Coles Brunswick Group 0207 404 5959Sarah Tovey Brunswick Group 0207 404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Marshalls