Weir Group PLC
08 July 2005
8 July 2005
The Weir Group PLC
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Sale of Techna businesses
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The Weir Group PLC has entered into agreements to dispose of the desalination
and water treatment businesses of its Techna Division to Veolia Water Systems,
part of Veolia Water, the water division of Veolia Environnement. The aggregate
value of the transactions is £27.7 million, translating to £17.25 million on a
debt free, cash free basis. The net proceeds will be re-invested in the Weir
Group's core operations. The companies include Weir Westgarth in Scotland, Weir
Entropie in France and Weir Envig in South Africa. These businesses provide
specialist engineering design and system solutions in the areas of water
treatment and sulphate removal with operations in the UK, France, South Africa,
North and South America, the Middle East and Australia. Together they represent
less than 7 percent of Weir Group sales. The Division's defence and liquid gas
handling businesses of Weir Strachan & Henshaw and Weir LGE will remain within
The Weir Group PLC.
The disposal of Weir Westgarth and Weir Entropie was completed on 8 July 2005
when £25.3 million of the aggregate consideration was paid. The disposal of the
South African company is conditional on approval from the local competition
authorities when the balance of the purchase price will be paid.
Mark Selway, Chief Executive of The Weir Group PLC, commented:
'The changing dynamics of the desalination market towards larger scale projects
and a move from design and build to ownership makes this an area unattractive to
the Weir Group. This transaction is consistent with our strategy to realise
value from our non-core assets and to focus on our core operations. This
complements our June disposal of Flowguard Ltd, our UK pulsation dampener
business in the Engineered Products division for £2.9 million.
'The desalination and water treatment businesses, within Techna, have an
excellent track record of developing specialist technologies for both the
desalination and oil industries. We believe that Veolia is well positioned to
further develop these businesses to realise their full potential and look
forward to a continuing relationship supplying them with our specialist pumps,
valves and engineering services.'
In the year ended 31 December 2004 the three desalination and water treatment
businesses reported losses of £0.2 million on turnover of £46.9 million. Gross
assets at 31 December 2004 were £33.9m and taking into account the transfer of
the liabilities to the acquirer at closing, the transaction will deliver a
profit on the sale to the Weir Group. The businesses have a total of 230
employees (68 in the UK). All employees including the Divisional Managing
Director, Paul Capell, will transfer with the businesses.
For further enquiries:
The Weir Group PLC:
Helen Walker Group PR Manager +44 141 637 7111
The Weir Group PLC + (0) 7789 032 296
Suzanne Bartch Maitland +44 20 7379 5151
Peter Ogden
NOTE:
Veolia Water Systems is the technology provider of Veolia Water, the water
division of Veolia Environnement (www.veoliaenvironnement.com) and is the world
leader in water treatment. A specialist in engineering and turnkey design/build
projects, Veolia Water Systems creates a range of technological solutions. With
headquarters in Paris, Veolia Water Systems operates in 50 countries worldwide.
This information is provided by RNS
The company news service from the London Stock Exchange
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