Sale of Rooflights Businesses for £38.6m
Yule Catto & Co PLC
27 March 2000
Yule Catto & Co plc ('Yule Catto')
Sale of Rooflights businesses
Yule Catto exchanged conditional contracts today with CRH plc, the
Irish building products group, to sell its rooflight businesses in
the UK, Eire, Germany and the Netherlands for a total
consideration of Euro63 million payable in cash on completion
(approximately £38.6m).
The rooflights businesses comprise Jet Kunststofftechnik GmbH and
its associated companies in Germany, Bik Bouwprodukten BV in the
Netherlands, a 50% equity interest in the joint venture holding
company which owns Williaam Cox Ireland Limited in Eire and the
business which trades as Cox Building Products in the UK. The
combined sales of the rooflights businesses were Euro63 million
for the year ended 31 December 1999 and profit before tax for the
same period was Euro6.8 million. The net assets of the rooflights
businesses at 31 December 1999 totalled Euro1 million and
aggregate borrowings being assumed by CRH were Euro14 million at
that date.
The rooflights businesses will form part of CRH's international
approach to the market for rooflights and architectural glazing,
adding to their existing operations in Germany and the
Netherlands.
Completion of the transaction is, amongst other things, subject to
clearance being obtained from the Department of Enterprise, Trade
and Employment in Eire.
The sale follows the purchase in November 1999 by Yule Catto of
the outstanding 50% shareholdings in Synthomer Ltd and Synthomer
GmbH, producers of synthetic latex polymers and compounded
latices, from its joint venture partner Reichhold Inc, and the
earlier £251 million acquisition of Holliday Chemical Holdings PLC
in 1998. It marks a continuation by Yule Catto of a policy to
concentrate on development of its speciality chemicals activities.
In the short term the proceeds of sale will be used to reduce
indebtedness.
Commenting on the transaction Alex Walker, Group Chief Executive
of Yule Catto said 'Under Yule Catto ownership each of our
rooflights businesses has developed a strong market position with
excellent opportunities for growth. Within a successful building
products group such as CRH we are sure that they will continue to
flourish and we wish all the management and employees every
success in the future.'
Brian Hill of CRH said 'This is an excellent deal for both
parties. The combination of CRH's and Yule Catto's daylight and
ventilation activities creates a pan-European business with
tremendous opportunities in the combined entity.'
For further information contact: S V Cummins - Finance Director
Tel: 01279 442791
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