Disposal

RNS Number : 7671D

Caledonia Investments PLC

01 April 2014

 



 

 

Caledonia Investments plc

Sale of Amber

Caledonia Investments plc ("Caledonia") announces that it has sold its stake in The Amber Chemical Company Limited ("Amber"), a global speciality silicones group, to ICM Corporation Inc ("ICM"), a US based silicones business backed by Century Park Capital Partners.

Caledonia has realised £23m from the sale which represents a premium of more than 50% on Caledonia's book valuation of Amber at 30 September 2013 of £15.2m.  The proceeds realised from the sale are in addition to the £19.5m of capital and dividend receipts that Caledonia has realised from Amber since 1 December 2010.

The sale of Amber is consistent with Caledonia's unquoted investment strategy of building long term value.

Commenting on the sale, Duncan Johnson, Caledonia's Head of Unquoted Investments, said:

"Amber has been owned by Caledonia for over 50 years during which time the business has developed into a market leading speciality silicones business and delivered good returns for its shareholder.  We firmly believe that Amber will fit well into ICM's growing business and are delighted that Caledonia's long term, supportive investment approach has been able to contribute to Amber's development."

Joachim Roeser, Amber's Chief Executive Officer, who will step down following the sale, said:

"Over the last eight years, Amber has transformed itself into a global speciality silicones business that is focused on delivering the highest level of service to its customers.  I am delighted that ICM has decided to purchase Amber and am confident that ICM will support Amber in the next phase of its development."

1 April 2014

Enquiries

Caledonia Investments plc	Tulchan Communications
Will Wyatt, Chief Executive	Peter Hewer
Duncan Johnson, Head of Unquoted Investments
Tel: + 44 20 7802 8080	Tel: [phone]

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Notes for editors:

Caledonia Investments plc

Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of approximately £1.3bn. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 46 years.

In the unquoted arena, Caledonia seeks to invest £20m to £60m in private companies either on a majority or minority basis in situations where it believes there to be a good opportunity for building value over the longer term.

The unquoted portfolio includes majority investments in: Park Holidays; Choice Care; TGE Marine; Latshaw Industries and Sterling Industries; as well as minority investments in: Cobepa and Bowers & Wilkins.

For additional information on Caledonia, please visit www.caledonia.com.  Neither the contents of the company's website nor the contents of any website accessible from hyperlinks on the company's website (or any other website) is incorporated into, or forms part of, this announcement.

Transaction details

Clearwater Corporate Finance provided financial advice to Caledonia with legal advice provided by Macfarlanes (Ian Martin and Stephen Drewitt).

 

 

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