Feb 14 2008
The Board of Avon Rubber p.l.c. today announces that it has exchanged contracts for the sale of its Aerosol Gasket business to Crosslinks Limited, based in South Wales and Corsham, Wiltshire, for a consideration of £1.75 million payable in cash on completion of the sale.
The business, currently located in Avon’s Wiltshire facility, manufactures and supplies cupseals and stem gaskets for a global customer base. It currently employs approximately 68 staff and incurred an operating loss of £0.1 million (before an allocation of £1.1 million of shared service costs from our UK manufacturing facility) on a turnover of £4.7 million, in the financial year to 30 September 2007. The gross assets of the disposed business were £3.2 million and the net assets £2.1 million as at that date.
Completion is expected to be in early March 2008 and the proceeds will be utilised to reduce current borrowings.
Commenting on the sale, Terry Stead, Chief Executive of Avon Rubber p.l.c. said: “The sale is a further step in the rationalisation of the Group. It allows the Company and its management to add focus and time on the Protection and Defence and Dairy businesses which are the cornerstones of the Group's future.“