Disposal

RNS Number : 9449K

Hill & Smith Hldgs PLC

25 July 2011

 



Hill & Smith Holdings PLC ("Hill & Smith")

Strategic Disposal of Subsidiary

Hill & Smith, the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, announces that it has completed the sale of its wholly owned subsidiary Ash & Lacy Building Systems Ltd ("ALBS") to GG 149 Ltd, a newly formed company (the "Disposal").

ALBS is a long established business engaged in the manufacture and distribution of metal external building envelope systems mainly supplied to the building and construction industry. 

The consideration of approximately £5.1m, which includes the repayment of net debt of £2.8m, is payable in cash upon completion and is subject to adjustment, based on the capital employed of ALBS, following finalisation of completion accounts.  We expect that a loss on disposal of £5.9m (including goodwill of £5.0m held on consolidation and written off) will be recorded in the Hill & Smith financial statements as a non-underlying item.

Commenting on the Disposal, Derek Muir, Chief Executive of Hill & Smith, said:

"The Disposal completes our strategic repositioning of Hill & Smith away from building and construction activities and enables the Group to focus upon the core higher added value businesses involved in infrastructure products and galvanizing services".

Enquiries:

Derek Muir

Chief Executive

Hill & Smith Holdings PLC

Tel:  + 44 (0) 121 704 7430

 

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