Completion of Investment

RNS Number : 2630K

Robinson PLC

12 July 2011

 



Robinson plc

("Robinson" or the "Company")

Completion of Investment

Robinson has today completed an agreement with Michael Gallo and Olive Fleming, the directors and owners of Scotplast Limited ("Scotplast") (the "Existing Shareholders"), to acquire 35% of the issued share capital of Scotplast.

Scotplast, which is based in Glasgow, specialises in producing plastic inmould labelled ice cream containers for commercial and retail markets.

Scotplast's audited turnover for the year ended 30 September 2010 was £4.1million; its audited profit before taxation for the same period was £0.1million; and the total value of the assets of Scotplast was £3.8million on that date.

The consideration for the acquisition of the 35% stake was £250,000, which is being paid from existing cash resources. In addition, Robinson has entered into a put and call option under which Robinson can acquire the balance of the issued shares of Scotplast, at any time in the period between 1 October 2013 and 30 April 2014. The price per share will be based on the performance of the business in the two years ended 30 September 2013. Furthermore, in the event of a higher offer for the business by a third party, Robinson agrees to sell 35% stake in Scotplast.

Robinson has granted Scotplast a secured credit facility of up to £300,000 bearing interest on commercial terms. The Facility is repayable on 30 June 2014

Commenting on the transaction, Adam Formela, Chief Executive Officer said "We are pleased to have the opportunity to get involved in this interesting business, that serves the UK food market, at this time. We believe that Robinson has some positive contributions to make that should further enhance the business performance."

For more information please contact:

Robinson plc
Guy Robinson, Finance Director	Tel: [phone]
	www.robinsonpackaging.com
WH Ireland
Katy Mitchell	Tel: [phone]

 

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