Synstar PLC
9 May 2001
Synstar Plc
Disposal of Italian subsidiaries
Synstar Plc today announces the disposal of the share capital of Synstar
Computer Services SpA ('SCS SpA') and its subsidiaries to Gruppo ATR Srl of
Brescia, Italy.
Consideration for the contract is a cash payment of £0.25m. At the date of
completion, net assets were approximately £2.1m, including £2.4m of
inter-company loans, which will be written off. After legal costs, this will
result in a loss on disposal in the region of £4.5m. In the year to 30th
September 2000, SCS Spa contributed revenue of £20.8m and made a £1.9m loss
before tax and interest.
As part of the transaction, Gruppo ATR SpA will take responsibility for the
overdraft of SCS SpA. £2.1m of this is subject to an on-going guarantee from
Commerzbank, which is in turn underwritten by Synstar Holdings Ltd. Under the
terms of the contract, ATR Gruppo is under an obligation to obtain the release
of these guarantees within 90 days of the completion date.
The sale includes a mutual support and market development agreement, which
guarantees that Synstar Plc will use Gruppo ATR to service pan-European
contracts within Italy. Gruppo ATR has agreed reciprocally to use Synstar Plc
for services to its customers outside Italy. A non-competition clause is
included.
Gruppo ATR SpA has a long-established business in the supply and maintenance
of print and mail room hardware to a number of high profile customers, both
within Italy and elsewhere in Europe. Acquisition of the SCS SpA capabilities
in the maintenance of IT hardware and associated system support complements
this business well in their core Italian marketplace.
Commenting on the transaction, Synstar Plc Chief Executive Steve Vaughan said
'This disposal has the benefit of retaining our pan-European delivery
capability to support our excellent customer base, but at the same time allows
Synstar to concentrate investment on the remainder of the group. We look
forward to a long-term beneficial relationship with Gruppo ATR.'
Presidente of Gruppo ATR Giuseppe Conti commented 'The capabilities of Synstar
SpA complement the activities of the other parts of ATR, and represent a
valuable extension to the group.'
For further information:
Synstar plc
Christine Jones 01344 662 744
GCI Financial
Roger Leboff / Nick Lambert 020 7398 0800
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