8th Oct 2007 07:00
Macfarlane Group PLC08 October 2007 Macfarlane Group PLC to dispose of its US/Mexico operations ("the business") 8 October 2007 In line with the Group's strategy to concentrate on and develop its corebusinesses, Macfarlane Group PLC ("Macfarlane") is pleased to announce that ithas concluded an agreement to sell its US and Mexican operations, MacfarlaneWestern Foam Packaging Products Inc. and Macfarlane de Mexico S.A de C.V, whichdesign and manufacture foam packaging components, to Specialized Packaging GroupL.P., for a total cash consideration of £3.8 million after attributable expensesof £0.2m. £3.6 million of the consideration will be paid immediately, with theretained consideration becoming payable in January 2008. The proceeds will beused to further reduce Group borrowings. The business made an operating profit of £0.2 million on turnover of £18.2million in the year to 31 December 2006 (audited). The gross assets of the business disposed of were £6.4 million (unaudited) at 30September 2007 and the net assets of the business being sold totalled £5.3million (unaudited) at the same date. The Directors estimate that the disposalwill produce a realised loss of £1.7 million in the current financial year to 31December 2007. This loss was provided in the accounts for the six months to 30June 2007 issued with our interim results announcement on 11 September 2007. Further information:Macfarlane Group PLCArchie S. Hunter (Chairman) 0141 333 9666Peter D. Atkinson (Chief Executive) 0141 333 9666John Love (Finance Director) 0141 333 9666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Macfarlane Grp.