Disposal

Headlam Group PLC 04 September 2002 Headlam Group plc ('Headlam') Disposal of Windowcoverings businesses ('the windowcovering businesses') Headlam announces that on Tuesday 3 September 2002 it completed the disposal of the four trading companies comprising it's windowcoverings business, Eclipse Blind Systems Limited ('Eclipse'), Eclipse-OPM Blind Systems AB ('OPM'), Vertika International Limited ('Vertika'), and William O'Hanlon and Company Limited ('O'Hanlon's'). Eclipse and Vertika, based in Glasgow, are engaged in the marketing and distribution of blind components to independent contractors and retailers. OPM, based in Sweden manufactures and distributes materials for venetian blinds. O'Hanlon's, based in Newtown, Powys, assembles, markets and distributes ready made blinds and distributes soft furnishing products to the retail trade. The companies were sold to the Dutch based Hunter Douglas group, the world leaders in windowcovering. Consideration payable in cash amounts to £12.1 million and includes the discharge of intercompany balances amounting to £3.4 million. Furthermore, Hunter Douglas will assume responsibility for the bank borrowings of the windowcovering businesses, which at completion amounted to approximately £3.6 million. As at 31 July 2002 the windowcoverings businesses had a net asset value of £10.4 million. In the twelve months to 31 December 2001 the turnover of the windowcoverings businesses amounted to £35.0 million and operating profit amounted to £2.2 million. The disposal of the windowcoverings businesses will enable Headlam to concentrate exclusively on the development of its floorcovering activities. Enquiries Headlam Group plc 01675 433000 Tony Brewer Chief Executive Steve Wilson Finance Director End This information is provided by RNS The company news service from the London Stock Exchange
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