CIU.L Regulatory News (CIU)

21 Jul 2006 07:01

Cape PLC21 July 2006 Cape PLC ("Cape" or the "Company") Disposal of Cleton Business Further to its announcement on 26 April 2006, Cape PLC (AIM:CIU) is pleased toannounce that on 20 July 2006 completed the disposal of the business and assetsof Cleton Insulation BV, Cleton Maintenance BV, Cleton Insulation Belgium NV andCleton Isolierungen GmbH (the "Cleton Business"), The Cleton Business was Cape'sindustrial services businesses in the Netherlands, Germany and Belgium. Thepurchaser, SGB Group Limited, is a subsidiary of the Harsco Corporation's AccessServices business which serves the industrial plant maintenance and othermarkets in Europe, the Middle East, North America and Mexico. The terms of the disposal provide for an initial cash payment to Cape of€8.175m, which a represents a premium to the net assets sold, and is subject toadjustment by reference to completion accounts up to a maximum consideration of€8.85m. In the financial year ended 31 December 2005, the Cleton Business generatedturnover of c.€46.7m and contributed profit before tax of €0.3m. Cape's Chief Executive Martin May said: "The sale of the Cleton Business is inline with the Group's strategy of focusing on core markets where the return onmanaged assets, rate of growth in operating profit and cash generation justifyCape's presence. The proceeds will be used in the first instance to reduceborrowings and then to fund Cape's growth strategy in its core markets in the UKand Middle East." ENDS For further information, please contact: Cape PLCMartin May, Chief Executive +44 (0)1924 876 276 Bell Pottinger Corporate & FinancialVictoria Geoghegan +44 (0)20 7861 3232 Notes to editors Cape PLC is the parent company of a number of service providing organisationsthe 'Group') operating primarily in the oil and gas, petrochemical and powergeneration industries. The Group has turnover of c. £260 million and employsaround 7,700 people in 23 countries worldwide. The Group's sole operating business is Cape Industrial Services ('CIS'). CISspecialises in the provision of scaffolding, insulation, fire protection andother essential services to major industrial clients in the energy sector. CIS operates in Bahrain and Saudi Arabia under the name RB Hilton. In the UK, CIS also operates as Cape Hire and Cape Security. This information is provided by RNS The company news service from the London Stock Exchange