Disposal

RNS Number : 4786I

Yule Catto & Co PLC

12 March 2010

 



12 March 2010

Yule Catto & Co plc

Disposal of Revertex Finewaters Sdn Bhd

Yule Catto & Co plc ("the Group"), an international producer of specialty chemicals, is pleased to announce that its joint venture subsidiary, Revertex (Malaysia) Sdn Bhd, has exchanged conditional contracts with H. B. Fuller Company for the sale of Revertex Finewaters Sdn Bhd ("Revertex Finewaters"). 

The consideration to be received by the Group for its 63% effective interest in Revertex Finewaters is Malaysian Ringgit 55.6 million (£11 million) representing an 8 x multiple of EBITDA in 2009.  The consideration will be paid in full in cash at completion. The proceeds of the sale will be used to reduce the Group's borrowings.

The completion of the sale is conditional on approval from the Malaysian regulatory authorities.

Revertex Finewaters is a leading Malaysian manufacturer and supplier of adhesives for industrial use in the local market and exports to other parts of South East Asia.  In the twelve months to 31 December 2009 it had sales of MR 62.4 million (£13 million), an operating profit of MR 11 million (£2 million) and gross assets of MR 37.2 million (£7 million).

The Revertex Finewaters' management team, led by Dr Kuek Heng Thong, will continue to run the business.

Adrian Whitfield, Chief Executive, commented:

"We are pleased to have secured the sale of this non-core business to a strategic global adhesives manufacturer which allows us to focus on the development of our polymer manufacturing activities in Asia.  We will continue to supply key raw materials to Revertex Finewaters from our other existing facility in Malaysia under a long term supply contract."

- Ends -

Enquiries:

Yule Catto & Co plc	Tel: [phone]
Adrian Whitfield, Chief Executive
David Blackwood, Finance Director
Hogarth	Tel: [phone]
John Olsen
Andrew Jaques
Ian Payne

 

END

 

 

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