Pennon Group PLC
7 December 2001
PENNON GROUP SELLS VIRIDOR INSTRUMENTATION LIMITED
Pennon Group Plc is pleased to announce that it has today exchanged a
conditional contract with Launchchange Ltd, a subsidiary of Danaher
Corporation, for the sale of Viridor Instrumentation Limited. The
consideration, which will be in cash, will include an element reflecting net
cash held on the Viridor Instrumentation balance sheet at completion. Final
consideration is expected to total £103 million inclusive of £7 million in
respect of net cash. Completion is subject to Danaher's obtaining necessary
regulatory approvals and no material adverse changes in the intervening
period.
The disposal, which was foreshadowed in the Group's preliminary results
announcement in May 2001, follows a major strategic review by Pennon Group
which determined that Viridor Limited would focus on its waste management
business. It will also assist in the Group's intention to return value to
shareholders, further details of which will be given when the timetable for
completion of the transaction has been finalised.
Viridor Instrumentation is a leading supplier of specialised environmental
monitoring and process control equipment with research and development and
manufacturing facilities in the UK, USA and Switzerland. It trades in over
150 countries. In the year ended 31 March 2001, the company had net assets of
£49.6 million and reported profit before tax of £4.9 million after corporate
charges and goodwill amortisation. As reported in the recent Interim Results
announcement, profit before tax on the same basis was £2.7 million in the
first half of 2001/02.
Colin Drummond, Chief Executive of Pennon Group's non regulated businesses -
which operate under the Viridor Limited banner - said today: 'The contract to
dispose of Viridor Instrumentation is the successful result of six months'
concerted effort to realise maximum value for shareholders. Viridor will now
focus on waste management. I would like to thank all Viridor Instrumentation
employees for their contribution to the success of the business and wish them
well for the future.'
ENDS
For further information, please contact:
Colin Drummond Chief Executive, Viridor 01392-443011
Jo Finely Investor Relations Manager 01392-443401
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