Disposal (5783J)
July 04 2011 - 2:00AM
UK Regulatory
TIDMRBN
RNS Number : 5783J
Robinson PLC
04 July 2011
Robinson plc
Sale of subsidiary
Robinson plc announces that it today concluded an agreement with
Sonoco Limited ("Sonoco") to sell to Sonoco its subsidiary business
of designing, manufacturing and selling spirally wound paperboard
containers based in Chesterfield, UK (the "Business").
The Business, Robinson Paperboard Packaging, represented 24% of
group revenues in 2010 but has not contributed to profits in the
past 5 years since it lost a long standing major contract. Sonoco
require the surplus capacity in the Chesterfield plant to meet its
own customer demands. Sonoco is also a significant customer of
Robinson plc for plastic packaging.
The consideration is GBP2.6m in cash subject to adjustment in
respect of working capital levels following production of
completion accounts. These monies will be used by Robinson to
reduce current bank debt.
The assets included in the Business include all customer
contracts, employees, manufacturing equipment and stock other than
certain specified assets defined in the acquisition agreement. The
operating loss attributable to the assets, taken from audited
accounts for the year ended 31 December 2010, was GBP0.5m and the
book value of the assets transferring was GBP1.9m.
In addition, Sonoco will take a 15 year lease over the
Business's site and factory buildings at Goyt Side Road for which
(following a two year rent free period) it will pay rental fees of
GBP0.45m per annum. Sonoco also have an option to purchase the
property within the next two years at a fixed price.
Commenting on the transaction, Adam Formela, Chief Executive
Officer said "This transaction represents a unique opportunity to
enhance future prospects for the business and employees of Robinson
Paperboard Packaging whilst allowing the Company to focus on
developing its plastics businesses in UK and Poland."
For more information please contact:
Robinson plc
Guy Robinson, Finance Director Tel: 01246 505196
www.robinsonpackaging.com
WH Ireland
Katy Mitchell Tel: 0161 832 2174
This information is provided by RNS
The company news service from the London Stock Exchange
END
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