Cookson Group PLC
22 February 2006
22 FEBRUARY 2006
SALE OF COOKSON'S CERAMIC FIBRES BUSINESS FOR US$23 MILLION
Cookson Group plc ('Cookson'), the leading materials science company, announces
that on 21 February 2006 it entered into agreements to sell its Ceramic Fibres
business ('Ceramic Fibres'), a business that forms part of its Ceramics
division, for a total cash consideration of US$23 million (£13.2 million*).
Cookson's Ceramic Fibres operations in Tennessee, the US and Poland are to be
sold to The Morgan Crucible Company plc ('Morgan Crucible') for a cash
consideration of US$21 million. Cookson has also separately agreed to divest
its 50% shareholding in its Ceramic Fibres joint venture in Mexico to its joint
venture partner, Grupo Nutec S.A. de C.V., for a cash consideration of US$2
million. Completion of both transactions is expected to take place in March
2006.
Following completion of the sale, Cookson will act as a distributor for Morgan
Crucible of ceramic fibre products into the iron and steel, foundry and
construction market segments in the NAFTA region.
For the year ended 31 December 2005, Ceramic Fibres had revenues of US$21
million (£12 million*).
Commenting on the sale, Nick Salmon, Chief Executive of Cookson Group plc, said:
'Ceramic Fibres is a non-core activity which, on its own, lacks the scale to
achieve a leading market position. It should have greater potential to develop
within its new owner's portfolio and hence this is a good deal for all parties.'
Notes:
* translated at an exchange rate of US$1.744/£1
Shareholder/analyst enquiries:
Nick Salmon, Chief Executive Cookson Group plc
Mike Butterworth, Group Finance Director Tel: + 44 (0)20 7061 6500
Isabel Vilela, Investor Relations Manager
Media enquiries:
John Olsen Hogarth Partnership
Tel: +44 (0)20 7357 9477
About Cookson Group plc
Cookson Group plc is a leading materials science company which provides
materials, processes and services to customers worldwide. The Group's operations
are formed into three divisions - Ceramics, Electronics and Precious Metals.
The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramic products to the glass and foundry industries. It
is also the regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.
The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.
The Precious Metals division is the leading supplier of fabricated precious
metals (gold, silver, platinum, etc.) to the jewellery industry in the US, the
UK, France and Spain. Products include alloy materials, semi-finished jewellery
components and finished jewellery.
This information is provided by RNS
The company news service from the London Stock Exchange
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