Sale of Polymer business
Smiths Group PLC
21 July 2003
Smiths Sells Polymer business to Trelleborg for £495 million cash
Smiths Group today announced the sale of its Polymer Sealing Solutions business
to Trelleborg AB of Sweden for a cash sum of £495 million. The sale is subject
to EU and US regulatory approval.
Commenting on the sale Smiths Group chief executive Keith Butler-Wheelhouse
said: 'The disposal emphasises Smiths' strategy of concentration on core
businesses in detection, medical and aerospace markets. The proceeds will be
used to reduce net debt, but we aim to continue to match buys with sells. This
transaction brings the proceeds of disposals since July 2002 to £650 million
with acquisitions of over £230 million.'
Polymer Sealing Solutions recorded sales in 2002 of £378 million with an
operating profit of £45 million. The business employs 6000 people and supplies
polymer products to the industrial, automotive and aerospace markets. Polymer's
net assets are £340 million including £190 million of capitalised goodwill.
After goodwill previously written off to reserves, the accounting loss on sale
will be approximately £130 million.
Subject to the above regulatory approval, Smiths will identify the results of
these discontinued activities separately in its 2003 Accounts. The 2003
earnings per share attributable to the discontinued activities, after allocation
of interest, is likely to be 4 1/2 pence.
Smiths Group has market-leading positions in aerospace systems, detection
systems, medical devices, mechanical seals, and interconnect products.
For further information, visit www.smiths-group.com
Enquiries :
Media: Bernard Carey: 020 8457 8403 Investors: Russell Plumley 020 8457 8203
Caroline Harris: 020 8457 8403
07771 973019
Notes to Editors
About Smiths Group
Smiths is a focused engineering company with market-leading positions worldwide
in its three chosen areas of specialisation. Its customers range from defence
contractors to petrochemical companies to hospitals. Headquartered in London,
Smiths Group has its manufacturing businesses principally in the UK, USA and
continental Europe.
About Polymer Sealing Solutions
Polymer Sealing Solutions employs 6000 people in over 25 countries and is a
world leader in polymer technology - elastomer, thermoplastic and PTFE - for
the, industrial and automotive and aerospace markets. Its principal
manufacturing sites are in the UK, Malta, Poland, Scandinavia and Italy and the
USA. 3300 of its employees are located in Europe with 1400 in the UK, 1000
employees are based in the USA and a further 300 employees are based throughout
the rest of the world. Its trading brands include Busak + Shamban, Forsheda,
Polypac and Dowty Automotive.
About Trelleborg
Trelleborg is a global industrial group. Operations are based on spearhead
competence within polymer materials and a high level of industrial know-how,
combined with functional solutions and systems designed to meet the needs of its
customers. The Trelleborg Group has annual sales of approximately SEK 18
billion, with about 15,000 employees in 40 countries. Trelleborg consists of
four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg
Engineered Systems and Trelleborg Building Systems. The Trelleborg share has
been quoted on the A list of the Stockholm Exchange since 1964.
This information is provided by RNS
The company news service from the London Stock Exchange
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