Divestment of Timber Engineering Interests (2019U)
December 19 2011 - 2:00AM
UK Regulatory
TIDMELCO
RNS Number : 2019U
Eleco PLC
19 December 2011
Eleco plc
("Eleco")
Divestment of Timber Engineering Interests
The Board of Eleco (AIM: ELCO) announces the divestment of its
Timber Engineering Interests with the sale of Gangnail Systems' UK
timber engineering business, and of International Truss Systems'
South African timber engineering business, to companies within the
Illinois Tool Works Inc. group (NYSE: ITW).
Total funds receivable in relation to the sale amount to
GBP7,962,500 of which GBP6,762,500 was received on completion and a
further GBP1,200,000 was placed in escrow and will be released
subject to certain conditions over the next 2 years. The funds
received on completion have been applied to reducing Eleco's bank
borrowings.
The divestment by Eleco of its timber engineering businesses is
consistent with Eleco's previously announced strategy of reducing
its involvement in certain of its capital intensive building
systems activities and expanding its successful international
software interests. The divestment also represents a major step
towards strengthening Eleco's financial position.
Profit before Tax of Eleco's timber engineering businesses for
the 12 months ended 30 June 2011 was GBP900,000. Net asset value as
at 30 June 2011 was GBP1,900,000.The financial impact of the
divestment on Eleco will be finalised and reported in Eleco's
preliminary announcement of its results for the 18 month period
ending 31 December 2011, which is anticipated in March 2012.
Enquiries:
John Ketteley
Executive Chairman Tel: 0207 422 8000
Matthew Turner
Finance Director Tel: 07907 545638
Cenkos Securities plc Tel: 020 7397 8900
Adrian Hargrave
Tim Anderson Tel; 0207 466 5103
Buchanans
This information is provided by RNS
The company news service from the London Stock Exchange
END
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