19 October 2005
19 October 2005
Sale of Specialty Rubber business
Elementis plc (LSE:ELM), today announced that it has agreed to sell its
Specialty Rubber business headquartered in Yateley, UK ('Linatex'), to private
equity funds managed by Navis Capital Partners ('Navis') for a net cash
consideration of approximately US$30.8 million (£17.6 million) on a cash free,
debt free basis. Navis is an Asian-based investment company.
Linatex is a leading international manufacturer of wet abrasion resistant rubber
products and process equipment. In the year ended 31 December 2004, Linatex's
operating profit was £0.2 million on sales of £45.9 million with net assets of
£17.1 million, excluding cash and debt. After taking account of transaction
costs and net asset levels at the time of the sale, Elementis expects to record
a one time book loss on sale of around £7.0 million.
Net proceeds from the sale will be used to make an additional contribution to
the UK pension scheme of £7.0 million, with the balance going to reduce net
borrowings. Completion is expected to take place before the end of 2005.
Edward Bramson, Executive Chairman of Elementis, commented: 'This completes the
strategic review of Linatex which was announced early in 2005. The review
concluded that the business was non-core and that a sale represented the best
value option going forward.'
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Elementis plc Tel: +44 (0)1784 227 000
Ed Bramson Chairman
Brian Taylorson Finance Director
Financial Dynamics Tel: +44 (0) 207 831 3113
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