Armour Trust PLC
11 April 2000
Armour Trust plc (the 'Company')
Proposed sale of Airfresh (UK) Limited, Bluecol Brands
Limited, Bars Motor Products Limited and Nilco Chemical
Company Limited (the 'Disposal')
Armour Trust plc is pleased to announce that it has entered
into a conditional agreement with Pennzoil-Quaker State
Limited, a wholly owned subsidiary of Pennzoil-Quaker State
Company (NYSE: PZL) to sell the whole of the issued share
capital of Airfresh (UK) Limited ('Airfresh'), Bluecol
Brands Limited, Bars Motor Products Limited and Nilco
Chemical Company Limited ('Bluecol Group'). The Disposal
is conditional upon shareholder approval which is being
sought at an extraordinary general meeting of the Company.
The gross aggregate consideration is £10.5 million payable
in cash on completion, approximately £3.2 million of which
relates to the repayment of intra-group debt.
Airfresh manufactures and sells a range of car air
fresheners. Products include Feu Orange, Highland Fresh
and a range of character air fresheners. Its principal
customers are Polco, Halfords, Maccess and Impex. In the
twelve months ended 30 April 1999, Airfresh reported a
profit before tax of £0.4 million on a turnover of £3.1
million. As at 31 October 1999, Airfresh had net assets of
£1.4 million. As at 31 January 2000, Airfresh employed 31
Bluecol Group is a manufacturer and distributor of branded
and own label cleaning and maintenance products for
automotive, domestic and industrial applications. Its
brands include Bluecol antifreeze, Bars, Jenolite,
Nilco and Buddy. It has a wide customer base which
includes Halfords, Maccess and Partco on the automotive
side and Tesco, Macro, Booker and Lakeland on the domestic
and industrial side.
In the twelve months ended 30 April 1999, Bluecol Group
reported a profit before tax of £0.5 million on a turnover
of £7.1 million. As at 31 October 1999, Bluecol Group had
net liabilities of £0.9 million. As at 31 January 2000,
Bluecol Group employed 56 people.
The net proceeds from this transaction will be used to
eliminate the Group's bank borrowings. The balance of the
proceeds will be placed on deposit pending appropriate
acquisition and investment opportunities.
Roger Pinnington, Armour Trust's Chairman, commented:
'The Disposal removes two of the major obstacles
constraining the Company's growth; namely the lack of
available funds to invest and the Company's high gearing
ratio. The Company can now look to consolidate and build
on the newly formed audio electronics division, focusing on
the technology sector where growth potential is strong'
11 April 2000
George Dexter, Chief Executive Armour Trust plc 01892 502 700
John Harris, Finance Director ' '
Tony Bartlett Beeson Gregory 020 7488 4040
Henry Turcan ' '