Heat Treatment Equipment Businesses Sold for £25m
Bodycote International PLC
15 November 1999
For further information, please contact:
John Chesworth, Managing Director
David Landless, Finance Director
Bodycote International plc Tel: 01625 505300
Edward Bridges
Financial Dynamics Tel: 0171 831 3113
BODYCOTE SELLS ITS HEAT TREATMENT EQUIPMENT MANUFACTURING BUSINESSES FOR £25
MILLION
Bodycote International plc ('Bodycote'), the international metallurgical
processing group, announces that it has agreed the sale of its heat treatment
equipment manufacturing businesses; Schmetz GmbH ('Schmetz'), Mahler
Industrieofenbau GmbH and BMI Fours Industriels to two institutional
investors, advised by Barclays Private Equity GmbH of Germany, and certain
managers ('the Purchaser').
The total consideration for the sale is DM75 million (£24.59 million), of
which DM65 million (£21.31 million) will be satisfied in cash on 12 November
1999, and the DM10 million (£3.28 million) balance by the issue of a 7 year
loan note. In addition, under a separate agreement, Bodycote and the
Purchaser have the option to sell or buy (as the case may be) certain land and
buildings owned by Schmetz for DM4.5 million (£1.48 million).
In aggregate, the businesses disposed of had sales of £22.3 million in the
year ended 31 December 1998, profits before tax of £3.5 million, and
contributed £2.7 million to the Group's consolidated pre-tax profit for the
year ended 31 December 1998. The aggregate net assets of the businesses and
properties being sold are approximately £4.7 million. The proceeds of the
disposal will be used for Bodycote's general corporate purposes.
As part of the sale arrangements, Bodycote has agreed to continue to source
furnaces (on a non-exclusive basis) from these three businesses.
Commenting on the disposal, John Chesworth, Managing Director of Bodycote,
said today:
'We are delighted to announce the sale of these businesses. We are selling
because our focus is to provide metallurgical and testing services to
industry. The physical vapour deposition equipment manufacturing business
of Hauzer Techno-Coating Europe BV is being retained to ensure the proper
technical and market development of the PVD technology.'
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