Carclo PLC
4 September 2001
CARCLO plc
DISPOSAL OF WIRE BUSINESS
Carclo plc, the technical plastics group, announces the
sale of its Joseph Sykes Brothers ('JSB') wire
manufacturing business to Bekaert, the Belgian, publicly
quoted, metal transformation and coatings technologies
group.
Bekaert will purchase the operating assets of JSB
excluding the debtors, creditors and the land and
buildings for a total amount of approximately £5.6
million to be paid in cash upon completion. The net book
value of the assets being sold at completion will be
approximately £4.6 million. The disposal of JSB will
result in the reinstatement of £1.5 million of goodwill
which was previously written off to reserves. Carclo has
retained the debtors and creditors with an estimated net
value of £1.8 million and the land and buildings with a
net book value of £3.2 million. The land and buildings
will be leased to Bekaert and will increase the value of
the group's non core property assets to £9.3 million. The
proceeds arising from the transaction will be used to
reduce group indebtedness.
JSB's principal activity is the manufacture of
specialised steel wires for spiral binding, haberdashery
products and other niche applications. In the year to 31
March 2001 JSB had sales of £13.7 million and generated
an operating profit before exceptional charges, interest
and taxation of £0.8 million.
The sale agreement is conditional upon satisfactory
consultation with the affected employees, with final
completion anticipated to take place around 14 September
2001.
The divestment of the JSB business fits into the
strategic plan developed over the last five years, with
the Carclo Technical Plastics division growing from 20%
to 80% of group activity.
For further information please contact:
Carclo plc
Ian Williamson, Chief Executive 01924 330 500
Chris Mawe, Finance Director
Golin/Harris Ludgate
Peter Gaze/Rachel Child 0207 324 8888
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