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A Christmas cracker of a deal

Added: (Thu Nov 30 2000)

Pressbox (Press Release) - A Christmas cracker of a deal


United Industries plc has sold its Precision Springs manufacturing businesses to Italian group Sogefi. S.p.A.

The three UK factories at Dudley, West Bromwich and Rochdale, along with two in the Netherlands were sold for £7 million. They make springs for automotive, aerospace, electronic and engineering industries.

Livingstone Guarantee, the UK’s largest independent mergers and acquisitions boutique arranged the deal.

Gordon Blair, a partner at Livingstone Guarantee, said “United Industries wants to focus on strengthening its financial position through a continuing disposal programme and to develop businesses that have attractive growth prospects.”

The factories employ around 290 people across the five sites. Profits to January were £800,000 on a turnover of £13.5 million.

United Industries intends to use the net proceeds of the deal to reduce the Group’s bank borrowings.

Sul Sahota, Chief Executive of United Industries plc, said:
“This disposal is in line with our strategy to realise shareholder value and the consideration of over 50 per cent of historic sales represents an attractive valuation.

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For more information contact Sue at Prowse & Company on 01372 363386 or Gordon Blair/James Lever at Livingstone Guarantee on 0207 484 47000.

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