21st Mar 2007 07:00
Premier Farnell plc 21 March 2007 Disposal of BuckHickman InOne
Premier Farnell plc ("Premier Farnell") announces that it has reached agreement to sell BuckHickman InOne ("BuckHickman" or the "Business"), to The BSS Group plc ("BSS") for a total consideration of approximately ‚£27 million (on a cash and debt free basis). The consideration is payable in cash on completion. It is Premier Farnell's intention to apply the proceeds against current indebtedness. The transaction is being implemented through an asset sale and is expected to close within 4 weeks, following a period of consultation with the employees of BuckHickman.
This transaction represents an important continuation of Premier Farnell's strategy to focus on the faster growing Electronic Design Engineer market.
BuckHickman is a leading UK distributor of industrial tools and supplies, distributing leading brand name products as well as those from its own well established brand "Roebuck". For the financial year ending 28 January 2007, the Business reported sales of ‚£99.8 million and operating losses before interest and tax of ‚£0.8 million. As at 28 January 2007 BuckHickman had gross assets of ‚£35.4 million and net operating assets of ‚£18.2 million.
It is anticipated that a loss on disposal of BuckHickman of approximately ‚£14 million will arise after allowing for the write-off of goodwill that is allocated to the Business.
Harriet Green, Premier Farnell's Group Chief Executive said:
"Today's sale represents another key deliverable for us against our strategy for profitable growth announced last October. Our other European businesses continue to enjoy strong performance as we pursue our global strategy to deliver profitable growth through focusing on the fast growing Electronic Design Engineering segment; extending our web offering to become a true multi-channel distributor and internationalising our business model into new markets. We wish BuckHickman and its employees well for the future."
Enquiries:
Premier Farnell plc
Mark Whiteling, Group Finance Director
+44 (0) 20 7851 4100
Steven Webb, Company Secretary and General Counsel +44 (0) 870 129 8608
Greenhill & Co. International LLP (Financial Adviser to Premier Farnell)
+44 (0)20 7198 7400James LuptonRachel Clark
Greenhill & Co. International LLP ("Greenhill"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for Premier Farnell and no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than Premier Farnell for providing the protections afforded to clients of Greenhill, or for providing advice in relation to these matters.
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