Disposal

RNS Number : 9538A

Vesuvius plc

27 March 2013

 



Strictly confidential

27 March 2013

Disposal of Precious Metals Processing Division

Proposed share repurchase programme

Vesuvius plc ("Vesuvius" or  the "Company"), a leading metal flow engineering company, announces that it has entered into an agreement to sell its Precious Metals Processing Division ("PMP") to Heimerle + Meule GmbH ("H + M"), a subsidiary of L. Possehl & Co, mbH ("Possehl") for a cash consideration of €56.8m, payable on completion.

The cash consideration will be subject to closing balance sheet adjustments.  Completion, which is expected by the end of the first half of 2013, will be subject to conditions including approval by the European Commission and by the Supervisory Board of Possehl.

The majority of the disposal proceeds will be returned to shareholders through the on-market repurchase of shares.  The balance of the proceeds will be used to reduce the Company's existing borrowings.

Commenting on the sale François Wanecq, Chief Executive of Vesuvius, said:

"Following the recent creation of Vesuvius plc through the demerger of Cookson, this is a further important strategic step for our company.  It represents the sale of a non-core asset and the final exit from precious metals processing, leaving Vesuvius principally focused on our core competence of molten metal engineering, serving the global steel and foundry industries.

"It is also a very positive outcome for the Precious Metals Processing business and its employees, offering the opportunity to develop a long-term future within a group dedicated to the precious metals industry.

"As a result of this disposal, we intend to return the majority of the net proceeds to shareholders through an on market repurchase of shares, demonstrating our desire to exercise strong capital discipline and generate superior returns.  Our strong balance sheet allows us to do this and still remain able to fund attractive growth opportunities."

Uwe Lüders, CEO of Possehl, said:

"With this acquisition we will strengthen and internationalise our very successful Precious Metals Business and will become one of the leading market players in Europe."

PMP is a leading supplier of fabricated precious metals to the jewellery industry in Europe and also has significant precious metal recycling operations. Its principal markets are the UK, France and Spain.  PMP reported a profit before interest and tax of £14.9m for the year ended 31 December 2012, and had gross assets of £37.6m as at that date.   

Contd./ 2

- 2 -

H + M, based in Pforzheim, Germany is a leading supplier in the precious metals alloys and precious metals recycling industries, supplying products to the jewellery, electrical, electronic and dental sectors.  Its principal markets are Germany and Austria.

Ends

Note to editors:

François Wanecq and Chris O'Shea, Chief Executive and Chief Financial Officer respectively of Vesuvius, will host a conference call for investors and analysts at 0800hrs (London time) today, 27 March 2013.  Dial-in details are as follows: 

Dial-in number:           [phone]
Confirmation code:     4856699

A replay will be available until 10 April 2013, via the following numbers:

UK:                                [phone]
US:                                [phone]
Confirmation code:     4856699

For further information please contact:

Shareholder/analyst enquiries:

Vesuvius plc	François Wanecq, Chief Executive	[phone]
	Chris O'Shea, Chief Financial Officer	[phone]
	Maddy Cox-Smith, Investor Relations Manager	[phone]

Media enquiries:

MHP Communications	John Olsen/Ian Payne			[phone]

 

END

 

 

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