Yule Catto & Co PLC
11 February 2008
Yule Catto & Co. plc
Sale of James Robinson
Yule Catto is an international producer of speciality chemicals, supplied to
global customers for use in a wide range of industries including
pharmaceuticals, FMCG, paints and adhesives
Yule Catto & Co plc ('Yule Catto' or the 'Company') is pleased to announce that
it has exchanged conditional contracts with Vivimed Labs Limited ('Vivimed') for
the sale of the entire issued share capital of James Robinson Limited and other
associated assets (together 'James Robinson') for a consideration of $21.15
million plus working capital of approximately $4.5 million. The consideration
will be paid as to $17.15 million plus the working capital amount in cash at
completion and a further $4 million into escrow pending successful completion of
certain product transfer arrangements.
The completion of the sale is conditional on, amongst other things, Vivimed
obtaining shareholder approval for the acquisition which is expected to be
obtained by mid April 2008.
The proceeds of the sale received by Yule Catto will be used to reduce the
Company's borrowings, and the transaction will be earnings accretive
James Robinson carries on the development, manufacture and supply of
photographic and photochromic chemicals and hair and other dyes. In the twelve
months to 31 December 2006 it had sales of £17.8 million, an operating profit of
£0.82 million and gross assets of £3.0 million.
The James Robinson management team led by Dr Richard Smith will continue to run
the business.
In addition, Yule Catto anticipates disposing of its interest in James Robinson
India (Private) Limited to its joint venture partner following the completion of
the sale of James Robinson for a consideration of some $1.5 million.
Adrian Whitfield, Chief Executive commented: 'This sale is in line with Yule
Catto's corporate strategy of delivering improved shareholder value from its
Impact Chemicals activities'.
11 February 2008
ENQUIRIES:
YULE CATTO Tel: 01279 442791
Adrian Whitfield, Chief Executive
David Blackwood, Finance Director
COLLEGE HILL Tel: 020 7457 2020
Gareth David
Anthony Parker
This information is provided by RNS
The company news service from the London Stock Exchange
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