Disposal

RNS Number : 5783J

Robinson PLC

04 July 2011

 



Robinson plc

Sale of subsidiary

Robinson plc announces that it today concluded an agreement with Sonoco Limited ("Sonoco")  to sell to Sonoco its subsidiary business of designing, manufacturing and selling spirally wound paperboard containers based in Chesterfield, UK (the "Business").

The Business, Robinson Paperboard Packaging, represented 24% of group revenues in 2010 but has not contributed to profits in the past 5 years since it lost a long standing major contract. Sonoco require the surplus capacity in the Chesterfield plant to meet its own customer demands.  Sonoco is also a significant customer of Robinson plc for plastic packaging.

The consideration is £2.6m in cash subject to adjustment in respect of working capital levels following production of completion accounts. These monies will be used by Robinson to reduce current bank debt.

The assets included in the Business include all customer contracts, employees, manufacturing equipment and stock other than certain specified assets defined in the acquisition agreement. The operating loss attributable to the assets, taken from audited accounts for the year ended 31 December 2010, was £0.5m and the book value of the assets transferring was £1.9m.

In addition, Sonoco will take a 15 year lease over the Business's site and factory buildings at Goyt Side Road for which (following a two year rent free period) it will pay rental fees of £0.45m per annum. Sonoco also have an option to purchase the property within the next two years at a fixed price.

Commenting on the transaction, Adam Formela, Chief Executive Officer said "This transaction represents a unique opportunity to enhance future prospects for the business and employees of Robinson Paperboard Packaging whilst allowing the Company to focus on developing its plastics businesses in UK and Poland."

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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