22nd Feb 2006 07:03
Cookson Group PLC22 February 2006 22 FEBRUARY 2006 SALE OF COOKSON'S CERAMIC FIBRES BUSINESS FOR US$23 MILLION Cookson Group plc ("Cookson"), the leading materials science company, announcesthat on 21 February 2006 it entered into agreements to sell its Ceramic Fibresbusiness ("Ceramic Fibres"), a business that forms part of its Ceramicsdivision, for a total cash consideration of US$23 million (£13.2 million*). Cookson's Ceramic Fibres operations in Tennessee, the US and Poland are to besold to The Morgan Crucible Company plc ("Morgan Crucible") for a cashconsideration of US$21 million. Cookson has also separately agreed to divestits 50% shareholding in its Ceramic Fibres joint venture in Mexico to its jointventure partner, Grupo Nutec S.A. de C.V., for a cash consideration of US$2million. Completion of both transactions is expected to take place in March2006. Following completion of the sale, Cookson will act as a distributor for MorganCrucible of ceramic fibre products into the iron and steel, foundry andconstruction market segments in the NAFTA region. For the year ended 31 December 2005, Ceramic Fibres had revenues of US$21million (£12 million*). Commenting on the sale, Nick Salmon, Chief Executive of Cookson Group plc, said: "Ceramic Fibres is a non-core activity which, on its own, lacks the scale toachieve a leading market position. It should have greater potential to developwithin its new owner's portfolio and hence this is a good deal for all parties." Notes: * translated at an exchange rate of US$1.744/£1 Shareholder/analyst enquiries:Nick Salmon, Chief Executive Cookson Group plcMike Butterworth, Group Finance Director Tel: + 44 (0)20 7061 6500Isabel Vilela, Investor Relations Manager Media enquiries:John Olsen Hogarth Partnership Tel: +44 (0)20 7357 9477 About Cookson Group plc Cookson Group plc is a leading materials science company which providesmaterials, processes and services to customers worldwide. The Group's operationsare formed into three divisions - Ceramics, Electronics and Precious Metals. The Ceramics division is the world leader in the supply of advanced flow controlrefractory products and systems to the global steel industry and a leadingsupplier of specialist ceramic products to the glass and foundry industries. Itis also the regional leader in the US, UK and Australia in the supply andinstallation of monolithic refractory linings. The Electronics division is a leading supplier of advanced surface treatment andplating chemicals and assembly materials to the automotive, construction andelectronics markets. The Precious Metals division is the leading supplier of fabricated preciousmetals (gold, silver, platinum, etc.) to the jewellery industry in the US, theUK, France and Spain. Products include alloy materials, semi-finished jewellerycomponents and finished jewellery. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
VesuviusMorgan Advanced Materials